Li, Xia - In: Frontiers of Economics in China 7 (2012) 2, pp. 286-304
In this paper, I extend the model in Coate and Loury (CL) (1993) to show how statistical discrimination by employers can help create gender wage gap for men and women with equal earning potentials. Given that employers do not perfectly observe a worker¡¯s skill type and partly rely on the...