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Department of Economics, Copenhagen Business School Working Paper Series, Department of Economics, Copenhagen Business School

No 12-2007:
Who is hurt by discrimination?

Birthe Larsen and Gisela Waisman

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 of discrimination

Keywords: na; (follow links to similar papers)

JEL-Codes: G10; (follow links to similar papers)

33 pages, January 1, 2007

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