Testing for Asymmetric Employer Learning and Statistical Discrimination
31 Pages Posted: 27 Sep 2018 Last revised: 22 Jun 2020
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: 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
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