L. Tarasonis has published an article in the journal "Labor Economics"

Tarasonis Linas EFST

EF scientific researcher Linas Tarasonis with co-authors Daniel Borowczyk-Martins (Copenhagen Business School) and Jake Bradley (University of Cambridge) have published an article in the journal Labour Economics entitled “Racial Discrimination in the U.S. Labor Market: Employment and Wage Differentials by Skill”.

 

In the U.S. the average black worker has a lower employment rate and earns a lower wage compared to his white counterpart. Lang and Lehmann (2012) argue that black-white wage and employment gaps are smaller for high-skill workers. We show that a model combining employer taste-based discrimination, search frictions and skill complementarities can replicate these regularities, and estimate it using data from the U.S. manufacturing sector. We find that discrimination is quantitatively important to understand differences in wages and job finding rates across workers with low education levels, whereas skill differences are the main driver of those differences among workers with high education levels.

 

"The article is special, because it reveals how standard macroeconomic theory can be applied to microeconomic problems. Most of the topic of literary discourse is empirical, in which the theoretical aspects of the problem are not thoroughly considered. Our article evaluates the theory of discrimination very seriously and shows the possibilities of the theoretical model to explain the essential empirical facts of racial discrimination in the US labor market, i.e. lower salaries and lower employment opportunities for black workers. Although the article deals with racial discrimination issues in the US, the theoretical model can be used to investigate discrimination against any other social group (women, elderly workers, sexual minorities, etc.)," said dr. Linas Tarasonis.