Publication: Discrimination as a Coordination Device: Markets and the Emergence of Identity
Date
2015-11
ISSN
Published
2015-11
Author(s)
Basu, Kaushik
Abstract
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.
Citation
“Basu, Kaushik. 2015. Discrimination as a Coordination Device: Markets and the Emergence of Identity. Policy Research Working Paper;No. 7490. © World Bank, Washington, DC. http://hdl.handle.net/10986/23454 License: CC BY 3.0 IGO.”
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