We introduce a model of two-sided statistical discrimination in which worker and firm beliefs are complementary. Firms … both empirical analysis designed to detect discrimination and policy meant to alleviate it. Affirmative action is much less … effective than in traditional statistical discrimination models. More generally, we demonstrate the futility of one …

-based discrimination, both of which are costly and lead to lower payouts. In contrast, accurate statistical discrimination is ruled out by …

A significant challenge to empirically testing theories of discrimination has been the difficulty of identifying taste …-based discrimination and of distinguishing it clearly from statistical discrimination. This paper addresses this problem through a two …-part empirical test of taste-based discrimination. First, it constructs measures of revealed preferences, which establish that World …

Discrimination has been widely studied in the social sciences. Economists often categorize the source of discrimination … inaccurate statistical discrimination generates an identification problem for attempts to isolate the source of differential … of discrimination—to formally outline the identification problem: when not accounted for, inaccurate statistical …

There have been over 80 field experiments on traditional dimensions of discrimination in labor and housing markets … since 2000, in 23 countries. These studies nearly always find evidence of discrimination against minorities. However, the … estimates of discrimination in these studies can be biased if there is differential variation in the unobservable determinants …

This chapter surveys the theoretical literature on statistical discrimination and affirmative action. This literature …