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Wages, Employment, And Statistical Discrimination: Evidence From The Laboratory

Author

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  • DAVID L. DICKINSON
  • RONALD L. OAXACA

Abstract

type="main" xml:id="ecin12103-abs-0001"> We report results from laboratory experiments designed to examine statistical discrimination. Our design expands upon existing research by generating data both on wage contracts and unemployment rates of directly competing worker groups. We find some evidence for statistical wage discrimination against workers having an identical expected productivity but a higher productivity variance. However, those same subjects are less likely to be unemployed, suggesting that our employer-subjects view hiring choice and wage contracts as substitutable. A clear implication is that field data discrimination estimates based on wages alone may overestimate the true impact of such discrimination. ( JEL C90, J71)

Suggested Citation

  • David L. Dickinson & Ronald L. Oaxaca, 2014. "Wages, Employment, And Statistical Discrimination: Evidence From The Laboratory," Economic Inquiry, Western Economic Association International, vol. 52(4), pages 1380-1391, October.
    • Handle: RePEc:bla:ecinqu:v:52:y:2014:i:4:p:1380-1391
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    File URL: http://hdl.handle.net/10.1111/ecin.2014.52.issue-4
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    Citations

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    Cited by:

    1. Anil Özdemir & Helmut Dietl & Giambattista Rossi & Rob Simmons, 2022. "Are workers rewarded for inconsistent performance?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 61(2), pages 137-151, April.
    2. Baert, Stijn, 2015. "Hiring a Homosexual, Taking a Risk? A Lab Experiment on Employment Discrimination and Risk Aversion," IZA Discussion Papers 9536, IZA Network @ LISER.
    3. Cartwright, Edward & Wooders, Myrna, 2020. "Own experience bias in evaluating the efforts of others," Journal of Economic Behavior & Organization, Elsevier, vol. 173(C), pages 164-178.
    4. Dickinson, David L. & Masclet, David & Peterle, Emmanuel, 2018. "Discrimination as favoritism: The private benefits and social costs of in-group favoritism in an experimental labor market," European Economic Review, Elsevier, vol. 104(C), pages 220-236.
    5. Ronald L. Oaxaca & David L. Dickinson, 2016. "Symmetric experimental designs: conditions for equivalence of panel data estimators," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 2(1), pages 85-95, May.
    6. Wozniak, David & MacNeill, Timothy, 2020. "Racial discrimination in the lab: Evidence of statistical and taste-based discrimination," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 85(C).
    7. Chen, Yiu Por (Vincent) & Zhang, Yuan, 2018. "A decomposition method on employment and wage discrimination and its application in urban China (2002–2013)," World Development, Elsevier, vol. 110(C), pages 1-12.
    8. David Masclet & David L. Dickinson, 2025. "Incorporating conditional morality into economic decisions," Theory and Decision, Springer, vol. 98(1), pages 95-152, February.
    9. Anil Özdemir & Helmut Dietl & Giambattista Rossi & Robert Simmons, 2020. "Are Workers Rewarded for Inconsistent Performance?," Working Papers 386, University of Zurich, Department of Business Administration (IBW).
    10. Katherine B. Coffman & Christine L. Exley & Muriel Niederle, 2021. "The Role of Beliefs in Driving Gender Discrimination," Management Science, INFORMS, vol. 67(6), pages 3551-3569, June.
    11. Kamal, Mustafa & Blacklow, Paul, 2021. "Attitudes to gender and personality in the Australian gender wage gap," Working Papers 2021-07, University of Tasmania, Tasmanian School of Business and Economics.

    More about this item

    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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