Low wages and high unemployment rates: the role of social interactions in hiring discrimination

Jacques, J.F. and Walkowiak, E. 2009. Low wages and high unemployment rates: the role of social interactions in hiring discrimination. Journal of Socio-Economics. 38 (3), pp. 456-463.

TitleLow wages and high unemployment rates: the role of social interactions in hiring discrimination
AuthorsJacques, J.F. and Walkowiak, E.
Abstract

The purpose of this paper is to explain why low-wage workers with identical qualifications to higher-wage workers are more exposed to unemployment. Each worker is considered to belong to a social group (defined according to his/her gender, age, and nationality). We assume that workers experience both productive interdependencies and social interactions within the firm. Also inter- and intra-group interactions determine worker productivity, and frictions on the labor market limit the hiring of the most productive workers. Consequently, externalities acting both within the firm and in the labor market can lead to a higher rate of unemployment for low-wage workers.

JournalJournal of Socio-Economics
Journal citation38 (3), pp. 456-463
ISSN1053-5357
YearJun 2009
PublisherElsevier
Digital Object Identifier (DOI)doi:10.1016/j.socec.2008.12.008
Publication dates
PublishedJun 2009

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