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Belief Flipping in a Dynamic Model of Statistical Discrimination

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  • Roland G. Fryer, Jr.

Abstract

The literature on statistical discrimination shows that ex-ante identical groups may be differentially treated in discriminatory equilibria. This paper constructs a dynamic model of statistical discrimination and explores what happens to the individuals who nonetheless overcome the initial discrimination. If an employer discriminates against a group of workers in her initial hiring, she may actually favor the successful members of that group when she promotes from within the firm. The worker's welfare implications (i.e. who benefits from an employer's discriminatory hiring practices) are unclear. Even though agents face discrimination initially, some may be better off because of it.

Suggested Citation

  • Roland G. Fryer, Jr., 2006. "Belief Flipping in a Dynamic Model of Statistical Discrimination," NBER Working Papers 12174, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:12174
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    Cited by:

    1. Nathalie Havet & Catherine Sofer, 2008. "Why Do Women's Wages Increase So Slowly Throughout Their Career? A Dynamic Model of Statistical Discrimination," LABOUR, CEIS, vol. 22(2), pages 291-314, June.
    2. Smith, Nina & Smith, Valdemar & Verner, Mette, 2011. "Why Are So Few Females Promoted into CEO and Vice-President Positions? Danish Empirical Evidence 1997-2007," IZA Discussion Papers 5961, Institute of Labor Economics (IZA).
    3. Paul A. Grout & In-Uck Park & Silvia Sonderegger, 2007. "An Economic Theory of the Glass Ceiling," The Centre for Market and Public Organisation 07/183, The Centre for Market and Public Organisation, University of Bristol, UK.
    4. Thomas Breda & Son Thierry Ly, 2012. "Do Professors Really Perpetuate the Gender Gap in Science? Evidence from a Natural Experiment in a French Higher Education Institution," CEE Discussion Papers 0138, Centre for the Economics of Education, LSE.

    More about this item

    JEL classification:

    • J7 - Labor and Demographic Economics - - Labor Discrimination

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