Statistical discrimination and statistical informativeness

Matteo Escud\'e, Paula Onuchic, Ludvig Sinander and Quitz\'e Valenzuela-Stookey
Authors registered in the RePEc Author Service: Matteo Escudé

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Abstract: We study the link between Phelps-Aigner-Cain-type statistical discrimination and familiar notions of statistical informativeness. Our central insight is that Blackwell's Theorem, suitably relabeled, characterizes statistical discrimination in terms of statistical informativeness. This delivers one-half of Chambers and Echenique's (2021) characterization of statistical discrimination as a corollary, and suggests a different interpretation of it: that discrimination is inevitable. In addition, Blackwell's Theorem delivers a number of finer-grained insights into the nature of statistical discrimination. We argue that the discrimination-informativeness link is quite general, illustrating with an informativeness characterization of a different type of discrimination.

Date: 2022-05, Revised 2022-05
New Economics Papers: this item is included in nep-ecm and nep-mic
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Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:2205.07128

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