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...

We test if firms statistically discriminate workers based on race when employer learning is asymmetric. Using data from the NLSY79, we find evidence of asymmetric employer learning. In addition, employers statistically discriminate against non-college educated black workers at time of hiring. We...