Equilibrium Screening and Categorical Inequality
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Equilibrium Screening and Categorical Inequality. / Fosgerau, Mogens; Sethi, Rajiv; Weibull, Jörgen.
I: American Economic Journal: Microeconomics, Bind 15, Nr. 3, 2023, s. 201-242.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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TY - JOUR
T1 - Equilibrium Screening and Categorical Inequality
AU - Fosgerau, Mogens
AU - Sethi, Rajiv
AU - Weibull, Jörgen
PY - 2023
Y1 - 2023
N2 - We analyze equilibrium outcomes under costly screening of candidates from distinct categories. Candidates choose how much effortto invest in skill acquisition, and the screener decides how carefullyto screen each candidate. Typically, there are multiple equilibria,and ex ante identical individuals in different categories can receivedifferent equilibrium treatment. The imposition of a quota for an initially disadvantaged group can result in increased screening intensity and skill investment by destabilizing the least active equilibrium.The endogeneity of screening enables powerful comparative statics,which we use to unify different strands in the literature on discrimination.
AB - We analyze equilibrium outcomes under costly screening of candidates from distinct categories. Candidates choose how much effortto invest in skill acquisition, and the screener decides how carefullyto screen each candidate. Typically, there are multiple equilibria,and ex ante identical individuals in different categories can receivedifferent equilibrium treatment. The imposition of a quota for an initially disadvantaged group can result in increased screening intensity and skill investment by destabilizing the least active equilibrium.The endogeneity of screening enables powerful comparative statics,which we use to unify different strands in the literature on discrimination.
U2 - 10.1257/MIC.20210391
DO - 10.1257/MIC.20210391
M3 - Journal article
VL - 15
SP - 201
EP - 242
JO - American Economic Journal: Microeconomics
JF - American Economic Journal: Microeconomics
SN - 1945-7669
IS - 3
ER -
ID: 370037733