We introduce peer effects in the costs of human capital acquisition into a model of statistical discrimination in labour markets. This creates a link between the level of segregation in social networks and racial disparities in job assignment and wages. We show that this relationship is...

We introduce peer effects in the costs of human capital acquisition into a model of statistical discrimination in labour markets. This creates a link between the level of segregation in social networks and racial disparities in job assignment and wages. We show that this relationship is...

We introduce neighborhood effects in the costs of human capital acquisition into a model of statistical discrimination in labor markets. This creates a link between the level of segregation and the likelihood and extent of statistical discrimination. As long as negative stereotypes persist in...

We introduce neighborhood effects in the costs of human capital acquisition into a model of statistical discrimination in labor markets. This creates a link between the level of segregation and the likelihood and extent of statistical discrimination. As long as negative stereotypes persist in...