When information about the true abilities of job-seekers and applicants are hard to get, statistical discrimination by employers can be an efficient strategy in the hiring and wage setting process. But statistical discrimination can induce costs, if labor relations cannot be terminated in the...

We use unique administrative data from a leading Italian University to estimate whether the use of admission tests and conditional progression schemes are effective strategies to select high-performing students. Previous work has mainly focused on the effect of selectivity policies on widening...