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Topic: Statistical discrimination


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In the News (Thu 26 Nov 09)

  
  labor1d
Becker (1971) sees discrimination as the product of "prejudice or a 'taste for discrimination' and it requires the discriminator pay or forfeit income for the privilege of exercising prejudicial tastes." (Ladd, 1998) To help move the discussion forward, we will distinguish four separate "types" of discrimination and examine their life expectancies.
Statistical discrimination will be competed away if the statistical profiles were based on incomplete or inaccurate information.
Discrimination would be proved if, after the impact of all other factors had been accounted for, race or gender still were shown to be related to the variable in question, that race or gender helped explain differentials in home prices, earnings, car prices, or mortgage rejection rates.
www.uri.edu /artsci/newecn/Classes/Art/INT1/Mic/Inputs/labor1d.html   (1764 words)

  
 Daubert and the Law and Science of Expert Testimony in Business Litigation
Statistical testing has been an element of proof in employment discrimination litigation since the appearance of the binomial model in Castaneda v.
Sheehan brought suit for age discrimination and his expert proffered a statistical study that showed a strong correlation between age and the pattern of dismissal.
Statistical testing is used by plaintiff to establish prima facie evidence of disparate impact and then by defendant to show flaws in plaintiff’s analysis, perhaps by showing that there are legitimate job-related characteristics of affected personnel that, when accounted for, compromise plaintiff’s statistical analysis.
www.daubertexpert.com /applying_employment.html   (1193 words)

  
 Discrimination - Susan's Place Transgender Wiki
Invidious discrimination generally refers to treating one group of people less well than another on such grounds as their race (racism), gender (sexism), religion (religious discrimination), caste, ethnic background, nationality, disability, sexual orientation, sexual preference or behavior, results of IQ testing, age (ageism) or political views.
Discrimination on the basis of such grounds as subcultural preference (Punks, Hippies, Mods, vs. Rockers) is also common.
Use of the term carries the implication that the factors on which the invidious discrimination is based are intrinsically irrelevant to the decision being influenced.
wiki.susans.org /index.php/Discrimination   (1401 words)

  
 Hispanic Pundit » Statistical Discrimination
Statistical differentiation is not racist in that it is not a preference for one race or another, it is simply a decision based on group averages when individual information is not available.
I don’t think that ’statistical discrimination’ is a good thing, but I do think that it is a practically inevitable result given human nature.
I agree with John, and HP on this one… but statistical differentiation is, in fact, what you go through when you take a loan from a bank, when you purchase insurance companies and when you watch advertisements on TV.
hispanicpundit.com /2006/02/09/statistical-discrimination   (575 words)

  
 Rooting Out Discrimination in Home Mortgage Lending   (Site not responding. Last check: 2007-09-07)
This type of statistical discrimination does not necessarily arise because lenders are lazy or mean-spirited; some information that affects a loan's profitability may not be easy for them to discover.
The statistical discrimination just described can arise only if marginal minority borrowers are more likely to default than whites, even after information like the applicant's income, credit history, and net worth is taken into account.
In contrast to the results of the statistical discrimination already discussed, this would occur even if there were no inherent difference in the creditworthiness of minority and white borrowers.
www.clevelandfed.org /Research/com96/1195.htm   (2498 words)

  
 Prof
Important point: Statistical discrimination does not reduce mean group income.  It just narrows the distribution.  People who exceed their group stereotype's performance level are under-paid; people who fall short of their group stereotype's performance level are over-paid.
For statistical discrimination, discrimination laws have the same negative effects.  Groups are really different on average, but the law says employers must treat them the same.  Firms then do their best to avoid paying people more than they're worth.
Discrimination laws have also severely curtailed the use of IQ tests, even though these are probably the best predictors of job performance available.
www.gmu.edu /departments/economics/bcaplan/e321/lab7.htm   (2555 words)

  
 The Effect of Statistical Discrimination on Black-White Wage Discrimination: Estimating a Model with Multiple Equilibria
The distinctive feature that allows the identification of the equilibrium is that there exists a representation of the model that uniquely relates the equilibrium wage distribution of one group of workers to the set of equilibrium choices made by the agents and a subset of the fundamental parameters.
In the first stage of the estimation, this subset of the fundamentals and the sufficient statistics for workers and firms' equilibrium choices are considered as estimable parameters of the wage distribution.
These findings imply that statistical discrimination and self-fulfilling expectations about groups average productivities did not exacerbate wage differences in the U.S., and that the decline in wage differentials cannot be explained by a change in the way equilibria were selected over time.
www.iaes.org /conferences/past/boston_46/prelim_program/d80-1/moro.htm   (1379 words)

  
 Statistical discrimination - Wikipedia, the free encyclopedia
Statistical discrimination is an economic theory of inequality based on group stereotypes.
In its simplest version, individuals are discriminated against because stereotypes are held against the groups they are associated with.
This type of preferential treatment is labeled "statistical" because stereotypes may be based on the discriminated group's average behavior.
en.wikipedia.org /wiki/Statistical_discrimination   (557 words)

  
 Shamena Anwar
The first essay investigates whether people statistically discriminate when evaluating the skills of others, and whether the presence and degree of statistical discrimination depend on the demographic background of the evaluator.
Although admittedly these perceptions are identified from a case study and thus may not be directly applicable to real world settings, they imply that the statistical discrimination fls and females encounter in the labor market is likely to depend upon the cultural background of the employer.
Although one cannot show that the relationship between customer discrimination and wage discrimination is causal, finding evidence of both of these types of discrimination against fl players is consistent with the notion that customer discrimination will cause wage differentials to appear between equally qualified NBA players.
www.econ.yale.edu /graduate/placement/2005-06/anwar.htm   (1355 words)

  
 Discrimination in a Job Market with Self Selection   (Site not responding. Last check: 2007-09-07)
In cases in which the discrimination results because employers' ability to measure qualifications differs from one group to another, the conditions under which one group is discriminated against are much weaker.
The economic impact of discrimination that is derived from quality differences between groups is shown to be quite different to the economic impact of discrimination that derives from differences in employer familiarity between groups.
In the latter case, for a set of equally qualified employees, it is possible for members of the group that is discriminated against to have higher wages.
faculty.haas.berkeley.edu /berk/disc.html   (251 words)

  
 AUDITORY FIGURE-GROUND
Hence, it is a statistical task and a bit harder to discriminate.
In this statistical Figure-Ground Task, the figure is a male voice and the ground is a male voice.
In a this Statistical Figure-Ground task, the figure and the ground are switched between a male and a female voice.
www.csun.edu /~vcoao0el/webct/de361s103OLD_folder/FGS.html   (539 words)

  
 Employment discrimination - Wikipedia, the free encyclopedia
Employment discrimination refers to discriminatory employment practices such as bias in hiring, promotion, job assignment, termination, and compensation, and various types of harassment.
In many countries, laws prohibit employers from discriminating on the basis of race, color, sex, religion, national origin, physical or mental disability, or age.
Unintentional discrimination (often termed "statistical discrimination") occurs when neutral selection practices produce a substantial disparity of outcomes between one group and another.
en.wikipedia.org /wiki/Employment_discrimination   (225 words)

  
 EconLog, Crashing Into Stereotypes, Bryan Caplan: Library of Economics and Liberty
Statistical discrimination of women in the age between 25-40 should really be minimized (since the men are just as likely to be gone 6 months from their workplace).
The standard lefty answer when someone suggests that some sort of statistical discrimination is a good idea is simply to deny that there are statistical differences across groups of people.
I am saying that: (i) avoiding statistical discrimination is a worthy liberal principal that is worth sacrificing for; and (ii) the social payoffs are likely to be large.
econlog.econlib.org /archives/2005/09/crashing_into_s.html   (3033 words)

  
 SSRN-Adverse Selection, Statistical Discrimination and Antitrust Law: the Case of Italian Automobile Optional Insurance ...
Risk classification is common practise in the insurance market: on one hand, it can help to refine the premium schemes and improve the economic situation of the insurance companies; on the other hand, it is a traditional remedy for situations of adverse selection, as the economic theory has demonstrated.
But the application of classification could be seen as altering competition in the marketplace when the statistical discrimination implies the adoption of the same price policies by many firms in the market.
But, giving the same result also for the years after the antitrust authority sentence and the prohibition to the application of statistical discrimination, the result of the model could also be seen as a demonstration of the fact that in this case statistical discrimination was not a good tool against adverse selection problem.
papers.ssrn.com /sol3/papers.cfm?abstract_id=146128   (330 words)

  
 Social Science Statistics Blog: Statistical Discrimination in Health Care
In health care there is a case for 'rational' discrimination' where physicians respond to clinical uncertainty by relying on priors about the prevalence of diseases across racial groups (for example).
The Institute of Medicine suggests that there are three types of discrimination: simple prejudice, stereotyping, and statistical discrimination where docs use probability theory to overcome uncertainty.
For the diagnosis of depression there is evidence that differences in doctors' decisions may be driven by different communication patterns between white docs and their white vs. minority patients.
www.iq.harvard.edu /blog/sss/archives/2006/05/statistical_dis.shtml   (447 words)

  
 "Employer Learning and Statistical Discrimination"
We provide a test for statistical discrimination or "rational" stereotyping in environments in which agents learn over time.
We also examine the empirical implications of statistical discrimination on the basis of race.
Our results support the hypothesis of statistical discrimination, although they are inconsistent with the hypothesis that firms fully utilize the information in race.
www.bls.gov /ore/abstract/nl/nl970020.htm   (254 words)

  
 Statistical Discrimination in a Labor Market with Job Selection1 (SMEALSearch) - Pal,Rangaswamy,Giles,Debnath   (Site not responding. Last check: 2007-09-07)
Statistical Discrimination in a Labor Market with Job Selection This paper derives a statistical discrimination model that includes the self selection that results when employees optimally choose which jobs to apply for.
Strong conditions on group dierences (MLRP must hold) are required to ensure that statistical discrimination against members of a single group will result.
Furthermore, the resulting statistical discrimination is smaller than what would result in an economy in which employees do not select the jobs they apply for.
gunther.smeal.psu.edu /16106.html   (273 words)

  
 Statistical Discrimination of Flat Glass Fragments by Instrumental Neutron Activation Analysis Methods for Forensic ...
A statistical model was used to assign the elemental variation among glasses to different experimental factors; by advanced statistical methods elemental differences between specific glasses can be identified.
Instrumental neutron activation analysis (INAA) and cyclic INAA (CINAA) techniques were used for the discrimination of flat glass fragments.
Analysis and comparison of float glass panes produced by two major Canadian manufacturers were also performed; the two were readily differentiated, primarily on the basis of their aluminum levels.
www.astm.org /JOURNALS/FORENSIC/PAGES/1915.htm   (294 words)

  
 Statistical Discrimination
If you use the default payoff parameters, the worker prefers to be hired, and a risk-neutral employer prefers to hire the worker as as long as the probability that the worker invested is sufficiently high.
This experiment implements the Coate/Loury model of statistical discrimination, which may have asymmetric equilibria in which the employers favor one color of worker, expecting them to invest more often, and these beliefs are self-confirming as workers of one color invest more often, in anticipation of better job assignments for those of their color.
The problems and potential benefits of various public policies to remedy the effects of discrimination can be discussed.
veconlab.econ.virginia.edu /std/sd.htm   (655 words)

  
 EconLog, Practicing What I Preach: How I Fight Statistical Discrimination, Bryan Caplan: Library of Economics and ...
I'm a libertarian economist, and as a libertarian economist I face an array of negative stereotypes from mainstream economists, which in turn lead to statistical discrimination.
That's going too far; as I've previously argued, non-profits such as universities are a lot more likely to let taste-based discrimination survive than for-profits.
I suspect I'm just embodying "[libertarians] are just ideologues" but one of the reasons I alot a good portion of my ranting to opposing immigration restrictions and military interventions is that an embarrassing number of libertarians are horribly and embarrassingly wrong (anti-immigration and pro-war) on these issues and I thus feel compelled to correct them.
econlog.econlib.org /archives/2005/09/practicing_what.html   (2000 words)

  
 Statistical Discrimination and the Returns to Human Capital and Credentials
Statistical Discrimination and the Returns to Human Capital and Credentials
The theory of statistical discrimination predicts lower returns to investments in human capital prior to labor market entry for minority groups if such investments are not directly observable to future employers.
Lower returns lead to lower optimum levels of human capital and lower average wages for minority groups.
www.frisch.uio.no /sammendrag/72_eng.html   (272 words)

  
 Statistical Discrimination with Employment Criteria
"Statistical Discrimination with Employment Criteria," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol.
"Statistical Discrimination with Employment Criteria," Discussion Papers 93-01, State University of New York at Albany, Department of Economics.
"Discrimination and Skill Differences in an Equilibrium Search Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol.
ideas.repec.org /p/nya/albaec/93-01.html   (374 words)

  
 Statistical Evidence in Litigation
Gaughan, Patrick A., and Thomas H. Hodson, Jr., "Statistical Analysis in Wrongful Discharge/Title VII Litigation," In Patrick A. Gaughan and Robert J. Thornton, editors, Litigation Economics, (JAI Press, 1993), pp.
Court permanently enjoined the planned use of statistical sampling to determine the population for congressional apportionment purposes.
Court rejected use of proof of damages on a classwide basis through the use of expert and statistical evidence in asbestos claims class action.
www.willyancey.com /statistical_evidence.htm   (2468 words)

  
 EconPapers: Employer Learning and Schooling-Related Statistical Discrimination in Britain
In the model, I provide theoretical conditions for the identification -- based on the experience and tenure profiles of estimated returns to ability and education -- of employer learning about unobserved worker's productivity and statistical discrimination based on years of schooling.
Using data from two British birth cohorts, estimates based on this model support the hypothesis that British employers have limited information about their workers, make inferences based on their education levels, and progressively learn about their true ability.
Econpapers is hosted by the Department of Business, Economics, Statistics and Informatics at Örebro University.
econpapers.repec.org /paper/ecjac2003/82.htm   (313 words)

  
 Table of contents for Sensory discrimination tests and measurements
Replicated Discrimination Tests: Beta-Binomial (BB) Model 6.1 Introduction 6.2 The Beta-Binomial Distribution 6.3 Estimation of Parameters of Beta-Binomial Model 6.4 Applications of Beta-Binomial Model in Replicated Tests 6.5 Testing Power and Sample Size for Beta-Binomial Tests References Appendix 6A 7.
Replicated Discrimination Tests: Corrected Beta- Binomial (CBB) Model 7.1 Introduction 7.2 The Corrected Beta-Binomial Distribution 7.3 Estimation of Parameters of Corrected Beta- Binomial Model 7.4 Statistical Testing for Parameters in Corrected Beta-Binomial Model 7.5 Testing Power and Sample Size for Corrected Beta- Binomial Model References Appendix 7A 8.
Statistical Analysis for Data 10.1 Estimates of Population or Group 10.2 Statistical Inference for Data References 11.
www.loc.gov /catdir/toc/ecip0514/2005017101.html   (408 words)

  
 SSRN-Statistical Discrimination and Efficiency by Peter Norman
It is found that the informational problem that makes equilibrium discrimination between identical groups possible also creates efficiency gains from discrimination in terms of reduced "mismatch" between workers and jobs.
Whether the solution to the planning problem involves discrimination depends on the trade-off between the informational gains of specialization and the losses in terms of increased investment costs.
Norman, Peter, "Statistical Discrimination and Efficiency" (June 7, 2000).
papers.ssrn.com /sol3/papers.cfm?abstract_id=249191   (218 words)

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