GENDER DISCRIMINATION ESTIMATION IN A SEARCH MODEL WITH MATCHING AND BARGAINING*

Luca Flabbi

doi:10.1111/j.1468-2354.2010.00600.x

journal article Aug 01, 2010

GENDER DISCRIMINATION ESTIMATION IN A SEARCH MODEL WITH MATCHING AND BARGAINING*

Luca Flabbi

International Economic Review Vol. 51 No. 3 pp. 745-783 · JSTOR

View at Publisher Save 10.1111/j.1468-2354.2010.00600.x

Abstract

This article develops a search model of the labor market with matching, bargaining, and employers' taste discrimination in which—under necessary but standard distributional assumption—it is possible to separately identify gender discrimination and unobserved productivity differences. The equilibrium shows that both prejudiced and unprejudiced employers wage discriminate. Maximum likelihood estimates on CPS data indicate that half of the employers are prejudiced, average female productivity is 6.5% lower, and two‐third of the gender earning differential may be explained by prejudice. An affirmative action policy is implemented resulting in a redistribution of welfare from men to women at no cost for employers' welfare.

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Metrics

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Citations

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References

Details

Published: Aug 01, 2010
Vol/Issue: 51(3)
Pages: 745-783
License: View

Authors

L

Luca Flabbi

University of North Carolina - Chapel Hill, CPC-UNC, IZA, and CHILD-CCA

Cite This Article

Luca Flabbi (2010). GENDER DISCRIMINATION ESTIMATION IN A SEARCH MODEL WITH MATCHING AND BARGAINING*. International Economic Review, 51(3), 745-783. https://doi.org/10.1111/j.1468-2354.2010.00600.x

GENDER DISCRIMINATION ESTIMATION IN A SEARCH MODEL WITH MATCHING AND BARGAINING*

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