A tradable employment quota
Authored by Metin Akyol, Stefan Pichler
Date Published: 2015
DOI: 10.1016/j.labeco.2015.08.001
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Abstract
Discrimination of women in the labor market requires appropriate policy
interventions. Affirmative action policies typically advocate the
introduction of an employment quota uniformly applied to all firms. In a
heterogeneous labor market such a policy may yield avoidable welfare
losses. We propose a tradable employment quota showing its effects on
wages, employment, and welfare in a labor market with search frictions
and taste discrimination. A tradable employment quota appears to be a
viable alternative yielding superior labor market outcomes. (C) 2015
Elsevier B.V. All rights reserved.
Tags
Competition
Economics
Equilibrium search model
Grand policy experiment
Labor-market
Statistical discrimination
Gender-differences
Family
Price
Pay