Adverse Selection in Team Formation under Discrimination
نویسنده
چکیده
A model of adverse selection when teams form endogenously highlights the relationship between discrimination and occupational choice. It shows discrimination can persist even when management allocates credit fairly, if worker beliefs about discrimination inuence their decision to engage in teamwork. Furthermore, among those choosing to work as entrepreneurs or in other individualistic occupations, discrimination victims outperform bene ciaries.
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