Trade unions vs. statistical discrimination: Theory and application to post-apartheid South Africa |
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Authors: | Jean-Paul Azam Sandrine Rospabé |
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Institution: | 1. University of Toulouse (ARQADE, IDEI), France;2. Institut Universitaire de France, France;3. CREM, University of Rennes 1, France |
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Abstract: | A simple model of statistical discrimination is analyzed, which captures some stylized facts of the South African labor market. It shows that this type of discrimination disappears when the wage rates are determined by efficient bargaining between a representative firm and a union, with endogenous membership. This may explain why the wage gap between Black and White workers in post-apartheid South Africa is smaller among unionized workers than among non-unionized ones. |
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Keywords: | J31 J51 J71 |
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