Working Paper Series, Department of Economics, Copenhagen Business School
Birthe Larsen and Gisela Waisman
Who is hurt by discrimination?
Abstract: The eects of discrimination of immigrants on the labour
market are studied within a search and wage-bargaining setting including a
risk of losing skills during the experience of unemployment. The negative
eects of discrimination in the form of higher unemployment and lower wages
spread to all workers, immigrants and natives, in all sectors of the
economy. The eect is stronger for immigrants, but natives suer as well. An
increase in the share of immigrants in the economy exacerbates the problem
Keywords: na; (follow links to similar papers)
JEL-Codes: G10; (follow links to similar papers)
33 pages, January 1, 2007
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