European Business Schools Librarian's Group

Working Papers,
Copenhagen Business School, Department of Economics

No 12-2007: Who is hurt by discrimination?

Birthe Larsen and Gisela Waisman
Additional contact information
Birthe Larsen: Department of Economics, Copenhagen Business School, Postal: Department of Economics, Copenhagen Business School, Solbjerg Plads 3 C, 5. sal, DK-2000 Frederiksberg, Denmark
Gisela Waisman: Department of Economics, Copenhagen Business School, Postal: Department of Economics, Copenhagen Business School, Solbjerg Plads 3 C, 5. sal, DK-2000 Frederiksberg, Denmark

Abstract: The eects of discrimination of immigrants on the labour market are studied within a search and wage-bargaining setting including a risk of losing skills during the experience of unemployment. The negative eects of discrimination in the form of higher unemployment and lower wages spread to all workers, immigrants and natives, in all sectors of the economy. The eect is stronger for immigrants, but natives suer as well. An increase in the share of immigrants in the economy exacerbates the problem of discrimination

Keywords: na

JEL-codes: G10

33 pages, January 1, 2007

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