Statistical Discrimination and the Implication of Employer-Employee Racial Matches

Yariv Fadlon ()

Journal of Labor Research, 2015, vol. 36, issue 2, 232-248

Abstract: In this paper, I test the empirical validity of a statistical discrimination model that incorporates employer’s race. I argue that if an employer statistically discriminates less against an employee that shares the same race (matched) than an employee who does not share the same race (mismatched), then the correlation between the employee’s wage and his skill level (AFQT) is stronger for a matched employee than for a mismatched employee. Using data from the NLSY97, which includes information about the racial background of employees and their supervisors, I find evidence that is consistent with a statistical discrimination model for young male employees. Copyright Springer Science+Business Media New York 2015

Keywords: Statistical discrimination; Employer-Employee data; NLSY97; Wage differentials J31 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (4)

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DOI: 10.1007/s12122-015-9203-2

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