Recruitment choices, wages and equilibrium unemployment

This article studies, within the matching model of equilibrium unemployment, the macroeconomic consequences of discriminatory recruitment decisions. Unemployed workers can be distinguished according to an extrinsec characteristic which does not affect their productivity (the impact of unemployement exposure on mental-health for instance). A discrimination against some of the unemployed individuals leads to higher real wages and a higher unemployment rate. The welfare of employed workers is improved. At the opposite, discrimination is harmful to both firms and long-term unemployed. Classification JEL : D83, E24, J64.