Fig. 2
From: Discrimination in a search and matching model with self-employment
Possible equilibria and productivity cut-offs. Functions shown are stylised, and not to scale. The upward and downward sloping sections of \(X_{s}^{k}(y)\) and \(X_{e}^{k}(y)\) are represented as linear for simplicity. ‘SE’ refers to self-employment. ‘WE’ refers to wage-employment. Panel a: all individuals are willing to take wage job offers. Panel b: no individuals are willing to take wage job offers. Panel c: only low-productivity individuals are willing to take wage job offers