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Job market signalling, stereotype threat and counter-stereotypical behaviour

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  • Richard Chisik

Abstract

I 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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  • Richard Chisik, 2015. "Job market signalling, stereotype threat and counter-stereotypical behaviour," Canadian Journal of Economics, Canadian Economics Association, vol. 48(1), pages 155-188, February.
  • Handle: RePEc:cje:issued:v:48:y:2015:i:1:p:155-188
    DOI: 10.1111/caje.12117
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    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General

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