Racial Discrimination in the Job Market : The Role of Information and Search.
ResearchPublished 1970
A theory of the value of discrimination in the job market as a function of the business cycle, based on elementary models of economic behavior in which, among other things, employer uncertainty about employee capacity to produce is incorporated. A favorable economic environment is assumed to induce employers to engage in hiring experiments, which, if they prove favorable, may eliminate race as a screening device when labor markets become less tight. If valid, the hypothesis implies that discrimination by employers--and by the nonwhite poor in their job search--is explicable on purely economic grounds and that a tight labor market could cause both groups to alter beliefs that give rise to discriminatory practices.
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Document Details
- Copyright: RAND Corporation
- Availability: Web Only
- Year: 1970
- Pages: 37
- Document Number: RM-6162-OEO
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