Affordable Access

Discrimination: Believe it and You'll See It



This paper presents a model where workers’beliefs and expectations about discrimination are significant. Identical firms announce vacancies and starting wages and workers apply to the firm. Workers are of two types, b and g, but identical in productivity. Firms do not prefer a particular type of worker over another. There is however a common belief among all workers that type b workers are discriminated against. This causes type b workers to avoid applying for jobs that offer wages perceived to be too high, since such workers believe that they don’t stand a chance against type g workers. In equilibrium some firms announce a job and high wages thereby attracting only type g workers, while others announce with low wages thereby attracting only type b workers.

There are no comments yet on this publication. Be the first to share your thoughts.


Seen <100 times

More articles like this

They'll see you now.

on Nature Jul 07, 2005

When to believe what you see.

on Molecular Cell August 2006

When to Believe What You See

on Molecular Cell Jan 01, 2006
More articles like this..