Testing for Asymmetric Employer Learning and Statistical Discrimination

31 Pages Posted: 27 Sep 2018 Last revised: 22 Jun 2020

See all articles by Suqin Ge

Suqin Ge

Virginia Tech - Department of Economics

Andrea Moro

Vanderbilt University - College of Arts and Science - Department of Economics

Beibei Zhu

Independent

Date Written: June 25, 2018

Abstract

We test if firms statistically discriminate workers based on race when em- ployer learning is asymmetric. Using data from the NLSY79, we find evidence of asymmetric employer learning. In addition, employers statistically discrimi- nate 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.

Keywords: Statistical Discrimination, Employer Learning, Asymmetric Learning

JEL Classification: J71, D82, J31

Suggested Citation

Ge, Suqin and Moro, Andrea and Zhu, Beibei, Testing for Asymmetric Employer Learning and Statistical Discrimination (June 25, 2018). Available at SSRN: https://ssrn.com/abstract=3243966 or http://dx.doi.org/10.2139/ssrn.3243966

Suqin Ge

Virginia Tech - Department of Economics ( email )

Department of Economics
Virginia Tech
Blacksburg, VA 24061
United States

Andrea Moro (Contact Author)

Vanderbilt University - College of Arts and Science - Department of Economics ( email )

Box 1819 Station B
Nashville, TN 37235
United States

Beibei Zhu

Independent ( email )

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