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.
References listed on IDEAS
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- Holzer, Harry J, 1987.
"Informal Job Search and Black Youth Unemployment,"
American Economic Review,
American Economic Association, vol. 77(3), pages 446-452, June.
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- Francine D. Blau & Lawrence M. Kahn, 1981. "Race and Sex Differences in Quits by Young Workers," ILR Review, Cornell University, ILR School, vol. 34(4), pages 563-577, July. Full references (including those not matched with items on IDEAS)
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