Job Market Signalling, Stereotype Threat, and Counter-Stereotypical Behavior
AbstractABSTRACT: We introduce stereotype threat in a multiple-productivity signalling model. Existence of multiple self-fulfilling stereotypes, which can generate statistical discrimination, is more likely if there is less variance in the ability distribution. A low endogenously-correct stereotype about a group forces higher-ability group members to choose a higher-productivity and a higher separating signal, thereby engaging in counter-stereotypical behaviour. This counter-stereotypical behaviour causes the remaining partially-pooling group to have lower average productivity, reinforcing the negative stereotype. The co-existence of stereotype threat and counter-stereotypical behaviour can explain the simultaneity of lower wages and higher education attainment in a group facing labour-market discrimination.
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Bibliographic InfoPaper provided by Ryerson University, Department of Economics in its series Working Papers with number 024.
Length: 32 pages
Date of creation: Aug 2010
Date of revision: Oct 2013
Find related papers by JEL classification:
- J70 - Labor and Demographic Economics - - Labor Discrimination - - - General
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-09-03 (All new papers)
- NEP-CTA-2010-09-03 (Contract Theory & Applications)
- NEP-LAB-2010-09-03 (Labour Economics)
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