Statistical Discrimination in a Search Equilibrium Model: Racial Wage and Employment Disparities in the US,
with Bruno Decreuse (Aix-Marseille School of Economics)
(June 2016)

Abstract: In the US, black workers spend more time in unemployment, lose their jobs more rapidly, and earn lower wages than white workers. This paper quantifi.es the contributions of statistical discrimination, as portrayed by negative stereotyping and screening discrimination, to such employment and wage disparities. We develop an equilibrium search model of statistical discrimination with learning based on Moscarini (2005) and estimate it by indirect inference. We show that statistical discrimination alone cannot simultaneously explain the observed differences in residual wages and monthly job loss probabilities between black and white workers. However, a model with negative stereotyping, larger unemployment valuation and faster learning about the quality of matches for black workers can account for these facts. One implication of our findings is that black workers have larger returns to tenure.​

| manuscript |


The Changing Nature of Gender Selection into Employment: Europe over the Great Recession,
with Juan J. Dolado (European University Institute) and Cecilia Garcia-Peñalosa (Aix-Marseille School of Economics)
(January 2017)

Abstract: The aim of this paper is to examine the role played by selectivity issues induced by nonemployment in explaining gender wage gap patterns in the EU since the onset of the Great Recession. We show that male selection into the labour market, traditionally disregarded, has become positive. This is particularly the case in southern countries with dramatic drops in male unskilled jobs during the crisis. As regards female selection, traditionally positive, we document mixed findings. While it has gone down in some countries, as a result of increasing female LFP due to an added-worker effect, it has become even more positive in other countries because adverse labour demand shifts, especially in temporary-contracts intensive industries, may have more than offset the rise in unskilled female labour supply.




Work in Progress:
  • The Life-cycle Profile of Worker Flows in Europewith Etienne Lalé (UQAM and IZA)
  • Real Wages over the Business Cycle in Large and Small Employers

Master Thesis, Paris School of Economics, 2009 (email me for paper):
  • Capital in Matching Models with Credible Wage Bargaining.