We review theories of race discrimination in the labor market. Taste-based models can generate wage and unemployment duration differentials when combined with either random or directed search even when strong prejudice is not widespread, but no existing model explains the unemployment rate...

We develop a model of college major selection in an environment where firms and students have incomplete information about the student's aptitude. Students must choose from a continuum of majors which differ in their human capital production function and can act as a signal to the market....