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Testing for Statistical Discrimination based on Gender

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  • Rune V. Lesner

    (Department of Economics and Business Economics, Aarhus University, Denmark)

Abstract

This paper develops a model which incorporates the two most commonly cited strands of the literature on statistical discrimination, namely screening discrimination and stereotyping. The model is used to provide empirical evidence of statistical discrimination based on gender in the labour market. It is shown that the implications of both screening discrimination and stereotyping are consistent with observable wage dynamics. In addition, it is found that the gender wage gap decreases in tenure but increases in job transitions and that the fraction of women in high-ranking positions within a firm does not affect the level of statistical discrimination by gender.

Suggested Citation

  • Rune V. Lesner, 2016. "Testing for Statistical Discrimination based on Gender," Economics Working Papers 2016-07, Department of Economics and Business Economics, Aarhus University.
    • Handle: RePEc:aah:aarhec:2016-07
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    File URL: https://repec.econ.au.dk/repec/afn/wp/16/wp16_07.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Statistical discrimination; Wage differentials; Gender gap; Employer learning;
    All these keywords.

    JEL classification:

    • J7 - Labor and Demographic Economics - - Labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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