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Experience-Based Discrimination: Classroom Games

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  • Roland G. Fryer
  • Jacob K. Goeree
  • Charles A. Holt

Abstract

The authors present a simple classroom game in which students are randomly designated as employers, purple workers, or green workers. This environment may generate "statistical" discrimination if workers of one color tend not to invest because they anticipate lower opportunities in the labor market, and these beliefs are self-confirming as employers learn that it is, on average, less profitable to hire workers of that color. Such discriminatory equilibria may arise even when workers are ex-ante identical, and the employer has no prior information regarding potential workers. The exercise typically generates a lively discussion about discrimination and how it may be addressed by alternative public policies.

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File URL: http://hdl.handle.net/10.3200/JECE.36.2.160-170
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal The Journal of Economic Education.

Volume (Year): 36 (2005)
Issue (Month): 2 (April)
Pages: 160-170

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Handle: RePEc:taf:jeduce:v:36:y:2005:i:2:p:160-170

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Cited by:
  1. Kevin Lang & Jee-Yeon K. Lehmann, 2011. "Racial Discrimination in the Labor Market: Theory and Empirics," NBER Working Papers 17450, National Bureau of Economic Research, Inc.
  2. Antonio Filippin & Francesco Guala, 2013. "Costless discrimination and unequal achievements in an experimental tournament," Experimental Economics, Springer, vol. 16(3), pages 285-305, September.
  3. Magnus Rodin & Gulay Ozcan, 2013. "Is It How You Look or Speak That Matters? “An Experimental Study Exploring the Mechanisms of Ethnic Discrimination”," Working Papers 009, Bahcesehir University, Betam.
  4. Charness, Gary & Kuhn, Peter, 2011. "Lab Labor: What Can Labor Economists Learn from the Lab?," Handbook of Labor Economics, Elsevier.
  5. David Masclet & Emmanuel Peterle & Sophie Larribeau, 2012. "The Role of Information in Deterring Discrimination: A New Experimental Evidence of Statistical Discrimination," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201238, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
  6. Schuster, Stephan, 2012. "Applications in Agent-Based Computational Economics," MPRA Paper 47201, University Library of Munich, Germany.
  7. Wayne Geerling, 2012. "Bringing the 'Dismal Science' to Life: Teaching Economics Through Multimedia," International Review of Economic Education, Economics Network, University of Bristol, vol. 11(2), pages 81-90.

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