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.
| Original language | English |
|---|---|
| Pages (from-to) | 48-63 |
| Journal | Labour Economics |
| Volume | 36 |
| DOIs | |
| Publication status | Published - 2015 |
| Externally published | Yes |
Keywords
- tradable employment quota
- affirmative action policies
- taste discrimination
- labor market
- search and matching
- agent-based model