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Belief Flipping in a Dynamic Model of Statistical Discrimination

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  • Roland G. Fryer, Jr.

Abstract

The literature on statistical discrimination shows that ex-ante identical groups may be differentially treated in discriminatory equilibria. This paper constructs a dynamic model of statistical discrimination and explores what happens to the individuals who nonetheless overcome the initial discrimination. If an employer discriminates against a group of workers in her initial hiring, she may actually favor the successful members of that group when she promotes from within the firm. The worker's welfare implications (i.e. who benefits from an employer's discriminatory hiring practices) are unclear. Even though agents face discrimination initially, some may be better off because of it.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 12174.

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Date of creation: Apr 2006
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Publication status: published as Fryer, Ronald G. Jr. "Belief flipping in a dynamic model of statistical discrimination." Journal of Public Economics 91, 5-6 (June 2007): 1151-1166.
Handle: RePEc:nbr:nberwo:12174

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  1. repec:hal:journl:halshs-00193372 is not listed on IDEAS
  2. Thomas Breda & Son Thierry Ly, 2012. "Do Professors Really Perpetuate the Gender Gap in Science? Evidence from a Natural Experiment in a French Higher Education Institution," CEE Discussion Papers 0138, Centre for the Economics of Education, LSE.
  3. Smith, Nina & Smith, Valdemar & Verner, Mette, 2011. "Why Are So Few Females Promoted into CEO and Vice-President Positions? Danish Empirical Evidence 1997-2007," IZA Discussion Papers 5961, Institute for the Study of Labor (IZA).
  4. Paul A. Grout & In-Uck Park & Silvia Sonderegger, 2007. "An Economic Theory of the Glass Ceiling," The Centre for Market and Public Organisation 07/183, Department of Economics, University of Bristol, UK.

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