A new GLO Discussion Paper finds for the US that firms statistically discriminate workers based on race when employer learning is asymmetric.
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GLO Discussion Paper No. 569, 2020
Testing for Asymmetric Employer Learning and Statistical Discrimination – Download PDF
by Ge, Suqin & Moro, Andrea & Zhu, Beibei
GLO Fellow Suqin Ge
Author Abstract: We test if firms statistically discriminate workers based on race when employer learning is asymmetric. Using data from the NLSY79, we find evidence of asymmetric employer learning. In addition, employers statistically discriminate against non-college educated black workers at time of hiring. We also find that employers directly observe most of the productivity of college graduates at hiring and learn very little over time about these workers.
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