I present a new discrimination model of the labor market in which employers are initially uncertain about the productivity of worker groups and endogenously learn about it through their hiring. Previous hiring experiences of an employer shape their subsequent decisions to hire from a group again...

I present a statistical discrimination model of the labor market in which persistent negative employer biases about the productivity of a group of workers arise through hiring and learning about the group. Bayesian profit-maximizing employers endogenously develop biased beliefs based on their...