Scandinavian Working Papers in Economics

Working Paper Series,
Uppsala University, Department of Economics

No 1998:13: Search, Bargaining and Employer Discrimination

Åsa Rosén ()
Additional contact information
Åsa Rosén: SOFI, Postal: Stockholm University, SE-106 91 Stockholm, Sweden

Abstract: This paper analyses Becker´s (1971) theory of employer discrimination within a search and wage-bargaining setting. Discriminatory firms pay workers who are discriminated against less, and apply stricter hiring-criteria to these workers. It is shown that the highest profits are realized by firms with a positive discrimination coefficient. Moreover, once ownership and control are separated, both highest profits and highest utility may be realized by firms with a positive discrimination coefficient. Thus, market forces, like entry and/or takeovers do not ensure that wage differentials due to employer discrimination will disappear.

Keywords: Search; discrimination

JEL-codes: J71

30 pages, June 4, 1998

Full text files

wp1998_13nv.pdf PDF-file Revised version
1998wp13.pdf PDF-file Original version

Download statistics

Questions (including download problems) about the papers in this series should be directed to Ulrika Öjdeby ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2024-02-05 17:14:00.