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Skill uncertainty and social inference

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  • Oxoby, Robert J.

Abstract

Research in psychology indicates that individuals often make inferences regarding unknown individual qualities based on potentially irrelevant (but socially observable) information. This paper explores occupational choices when individuals receive imprecise signals regarding ability and use the observable characteristics of previously successful individuals to infer own ability. Individuals who fail to observe successful predecessors of their same type may underestimate their potential for success in the occupation. We discuss the role of these biases in light of the literature on affirmative action and firm incentives.

Suggested Citation

  • Oxoby, Robert J., 2008. "Skill uncertainty and social inference," Labour Economics, Elsevier, vol. 15(3), pages 400-405, June.
    • Handle: RePEc:eee:labeco:v:15:y:2008:i:3:p:400-405
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    5. Oxoby, Robert J., 2008. "Skill uncertainty and social inference," Labour Economics, Elsevier, vol. 15(3), pages 400-405, June.
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    9. Oxoby, Robert J., 2002. "Status characteristics, cognitive bias, and incentives in teams," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 31(3), pages 301-316.
    10. Kim-Sau Chung, 2000. "Role Models and Arguments for Affirmative Action," American Economic Review, American Economic Association, vol. 90(3), pages 640-648, June.
    11. Jacob, Brian A., 2002. "Where the boys aren't: non-cognitive skills, returns to school and the gender gap in higher education," Economics of Education Review, Elsevier, vol. 21(6), pages 589-598, December.
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    14. Manski, Charles F., 1993. "Dynamic choice in social settings : Learning from the experiences of others," Journal of Econometrics, Elsevier, vol. 58(1-2), pages 121-136, July.
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    Cited by:

    1. Oxoby, Robert J., 2008. "Skill uncertainty and social inference," Labour Economics, Elsevier, vol. 15(3), pages 400-405, June.
    2. Larry L. Howard & Nishith Prakash, 2012. "Do employment quotas explain the occupational choices of disadvantaged minorities in India?," International Review of Applied Economics, Taylor & Francis Journals, vol. 26(4), pages 489-513, August.
    3. Peter, Frauke H. & Zambre, Vaishali, 2017. "Intended college enrollment and educational inequality: Do students lack information?," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 60, pages 125-141.
    4. Oxoby, Robert J., 2014. "Social inference and occupational choice: Type-based beliefs in a Bayesian model of class formation," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 51(C), pages 30-37.

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    More about this item

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General

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