High Standards Enhance Inequality in Idealized Labor Markets (1.0.0)
Takács, K. and Squazzoni, F. 2015. High Standards Enhance Inequality in Idealized Labor Markets. Journal of Artificial Societies and Social Simulation, 18(4), 2, http://jasss.soc.surrey.ac.uk/18/4/2.html
We built a simple model of an idealized labor market, in which there is no objective difference in average quality between groups and hiring decisions are not biased in favor of any particular group. Our results show that inequality in employment emerges necessarily also in such idealized situations due to the limited supply of high quality individuals and asymmetric information. Inequalities are exacerbated when employers have high standards and keep only the best workers in house. We found that ambitious workers get higher quality jobs even if ambition does not correlate or even negatively correlates with internal quality. Our findings help to corroborate empirical findings on higher employment discrepancies in high rather than low status jobs.
Release Notes
Cite:
Takács, K. and Squazzoni, F. 2015. High Standards Enhance Inequality in Idealized Labor Markets. Journal of Artificial Societies and Social Simulation, 18(4), 2, http://jasss.soc.surrey.ac.uk/18/4/2.html
inequality.nlogo is from 20 October, 2014.
inequalitymodel.nlogo is from 17 August, 2015.
Repast reimplementation is from 10 March, 2014.
Associated Publications
High Standards Enhance Inequality in Idealized Labor Markets 1.0.0
Submitted by
Károly Takács
Published Mar 20, 2018
Last modified Mar 20, 2018
Takács, K. and Squazzoni, F. 2015. High Standards Enhance Inequality in Idealized Labor Markets. Journal of Artificial Societies and Social Simulation, 18(4), 2, http://jasss.soc.surrey.ac.uk/18/4/2.html
We built a simple model of an idealized labor market, in which there is no objective difference in average quality between groups and hiring decisions are not biased in favor of any particular group. Our results show that inequality in employment emerges necessarily also in such idealized situations due to the limited supply of high quality individuals and asymmetric information. Inequalities are exacerbated when employers have high standards and keep only the best workers in house. We found that ambitious workers get higher quality jobs even if ambition does not correlate or even negatively correlates with internal quality. Our findings help to corroborate empirical findings on higher employment discrepancies in high rather than low status jobs.
Release Notes
Cite:
Takács, K. and Squazzoni, F. 2015. High Standards Enhance Inequality in Idealized Labor Markets. Journal of Artificial Societies and Social Simulation, 18(4), 2, http://jasss.soc.surrey.ac.uk/18/4/2.html
inequality.nlogo is from 20 October, 2014.
inequalitymodel.nlogo is from 17 August, 2015.
Repast reimplementation is from 10 March, 2014.