A characterization of "Phelpsian" statistical discrimination

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Date

3 août 2018

Type de document
Périmètre
Identifiant
  • 1808.01351
Collection

arXiv

Organisation

Cornell University



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Christopher P. Chambers et al., « A characterization of "Phelpsian" statistical discrimination », arXiv - économie


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We establish that statistical discrimination is possible if and only if it is impossible to uniquely identify the signal structure observed by an employer from a realized empirical distribution of skills. The impossibility of statistical discrimination is shown to be equivalent to the existence of a fair, skill-dependent, remuneration for workers. Finally, we connect the statistical discrimination literature to Bayesian persuasion, establishing that if discrimination is absent, then the optimal signaling problem results in a linear payoff function (as well as a kind of converse).

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