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A characterization of "Phelpsian" statistical discrimination

Chambers, Christopher P. and Echenique, Federico (2018) A characterization of "Phelpsian" statistical discrimination. . (Unpublished) http://resolver.caltech.edu/CaltechAUTHORS:20190626-161346320

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Abstract

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).


Item Type:Report or Paper (Discussion Paper)
Related URLs:
URLURL TypeDescription
http://arxiv.org/abs/1808.01351arXivDiscussion Paper
Additional Information:Echenique thanks the NSF for support through the grants SES1558757 and CNS-1518941. We are grateful to Leeat Yariv for comments on a previous draft.
Funders:
Funding AgencyGrant Number
NSFSES-1558757
NSFCNS-1518941
Record Number:CaltechAUTHORS:20190626-161346320
Persistent URL:http://resolver.caltech.edu/CaltechAUTHORS:20190626-161346320
Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:96760
Collection:CaltechAUTHORS
Deposited By: Tony Diaz
Deposited On:27 Jun 2019 01:44
Last Modified:27 Jun 2019 01:44

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