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On Statistical Discrimination in the Labor Market:Causes,Long-term Existence and Anti-discrimination Measures
SHI Wei, QING Shi-song
2009, (5):
66-72.
DOI:
The authors hold that the statistical discrimination model fully accounts for the phenomenon of income discrepancy caused by non-productive features that have long existed in the labor market through incomplete information on labor competency.A review of the literature reveals three major causes for statistical discrimination,namely,discrepancy in competence within the group,invalid estimation of the competence of the group,and endogenous investment of human resources.Meanwhile,the low efficiency of employers in updating the information,cross-generation transition of discrimination,and the strategies taken by the employers in judging the competence all lead to the long-term existence of statistical discrimination.The paper also summarizes major findings and conclusions of empirical studies.Validation of anti-discrimination measures is also discussed.
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