This paper offers a new theory of discrimination in the workplace. We consider a manager who has to assign two tasks to … employees expect to be favored. The manager, who has no taste for discrimination, discriminates in order to avoid demotivating …

We study hiring in a labor market where worker ability can only be observed on-the-job, but quickly becomes public … the firm, or when workers cannot commit to long-term contracts. In a dataset covering 38 years of hiring in the English … this hiring behavior is inefficient, because it has persistently depressed the average ability of the active manager labor …

We embed a competitive search model with labor market discrimination, or nepotism, into a two-sector, two …-country framework in order to analyze how labor market discrimination impacts the pattern of international trade and also how trade … trade affects discrimination. Discrimination, or nepotism, reduces the matching probability and output in the skilled …

We investigate whether national borders within Europe hinder the assortative matching of workers to firms in a high …