Statistical Discrimination and the Early Career Evolution of the Black-White Wage Gap
This article develops and tests a simple dynamic model of statistical discrimination. The model improves on earlier static models both by allowing ex ante uncertainty about worker productivity to be resolved as on-the-job performance is observed and by generating several testable empirical implications. These predictions are tested using a sample of young men from the National Longitudinal Survey of Youth, producing mixed evidence for the model. The main empirical result is that no black-white wage gap exists at labor-force entry but that one develops as experience accumulates, mainly because blacks reap smaller gains from job mobility. Copyright 1996 by University of Chicago Press.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Holzer, Harry J, 1987.
"Informal Job Search and Black Youth Unemployment,"
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American Economic Association, vol. 77(3), pages 446-452, June.
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- Lazear, Edward, 1979. "The Narrowing of Black-White Wage Differentials Is Illusory," American Economic Review, American Economic Association, vol. 69(4), pages 553-564, September.
- William R. Johnson, 1978. "A Theory of Job Shopping," The Quarterly Journal of Economics, Oxford University Press, vol. 92(2), pages 261-277. Full references (including those not matched with items on IDEAS)
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