Testing for asymmetric employer learning and statistical discrimination

Suqin Ge, Andrea Moro and Beibei Zhu

Applied Economics, 2021, vol. 53, issue 12, 1361-1377

Abstract: 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 also find that employers directly observe most of the productivity of college graduates at hiring and learn very little over time about these workers.

Date: 2021
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DOI: 10.1080/00036846.2020.1830939

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