Theoretical modeling reveals how statistical discrimination operates in competitive labor markets, highlighting the empirical plausibility of alternative stochastic frameworks.
Examines economic discrimination in labor markets using a stochastic model. Analysis of several types of economic discrimination within the context of competitive market assumptions; Empirical plausibility and implications of the alternative models of economic discrimination; Role of statistical theories in the explanation of labor market discrimination. (Abstract copyright EBSCO.)
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Aigner et al. (1977) studied this question.
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