The Consequences of Being Different - Statistical Discrimination and the School-to-Work Transition

Barbara Mueller and Stefan Wolter

No 3345, CESifo Working Paper Series from CESifo

Abstract: 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 short term and wages are fixed over a certain period. In this paper we use a unique longitudinal survey that follows the PISA 2000 students in their educational and work-life career. We test whether deviance in the PISA test scores from what one would have predicted based on observable characteristics, influences the probability to succeed in the transition from compulsory school into a firm-based apprenticeship and whether it can explain differences of the individual performances during training. Our results suggest that hard-to-get information plays a significant role in the transition, but not always in a symmetric manner.

Keywords: statistical discrimination; school-to-work transition; PISA (search for similar items in EconPapers)
JEL-codes: I20 J24 J71 (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Working Paper: The consequences of being different - Statistical discrimination and the school-to-work transition (2011)
Working Paper: The Consequences of Being Different: Statistical Discrimination and the School-to-Work Transition (2011)
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