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Discrimination as a coordination device : markets and the emergence of identity (Inglês)

The paper develops a new theory of group discrimination in which the discrimination in favor or against certain groups is simply a coordination device. It is built on the axiom that a person who gets to perform many tasks is more effective in carrying out each task, which implies increasing returns to productivity in doing the same task or strategic complementarity between doing different tasks. The theory helps us understand discrimination in free markets and the .finding of some empirical studies that show that people discriminate in job markets against certain groups even when all other traits are held constant. The model gives insight into the relation between group size, discrimination, and productivity.


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    Documento de trabalho sobre pesquisa de políticas

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    Regiões Mundiais,

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    Discrimination as a coordination device : markets and the emergence of identity

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    demand for service;rental housing market;sovereign credit rating;learning by doing;individual in society;partial equilibrium analysis;basis of race;credit rating agencies;credit rating agency;economies of scale;partial equilibrium model;law and economics;labor market discrimination;colleges and university;ratings and rankings;loans from bank;analysis of institutions;empowerment of woman;racial discrimination;strategic complementarity;market outcome;increasing return;free market;gender discrimination;smaller group;production function;behavioral economics;coordination problem;empirical study;Economic Policy;rational expectation;invisible hand;social exclusion;ring theory;social identity;emerging economy;gender preference;Higher Education;Emerging economies;reduced inequality;general equilibrium;productive economy;global market;gross value;alternative mode;theoretical model;Corporate Law;politically unacceptable;statistical theory;bond rating;employment protection;equilibrium concept;competitive equilibrium;discriminatory behavior;white man;social life;uniform rate;interest argument;interesting case;caste identity;national output;human beings;positive economics;optimal size;supply side;endogenous growth;intellectual history;adversely impact;work experience;racial bias;individual behavior;job market;open access;development policy;social interaction;market equilibria;sexual orientation;productive worker;statistical association;expected value;random selection;competitive market;racial inequality;low-wage labor;



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