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Journal of Labor Research

, Volume 36, Issue 2, pp 232–248 | Cite as

Statistical Discrimination and the Implication of Employer-Employee Racial Matches

  • Yariv D. FadlonEmail author
Article

Abstract

In this paper, I test the empirical validity of a statistical discrimination model that incorporates employer’s race. I argue that if an employer statistically discriminates less against an employee that shares the same race (matched) than an employee who does not share the same race (mismatched), then the correlation between the employee’s wage and his skill level (AFQT) is stronger for a matched employee than for a mismatched employee. Using data from the NLSY97, which includes information about the racial background of employees and their supervisors, I find evidence that is consistent with a statistical discrimination model for young male employees.

Keywords

Statistical discrimination Employer-Employee data NLSY97 Wage differentials J31 

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Copyright information

© Springer Science+Business Media New York 2015

Authors and Affiliations

  1. 1.Department of EconomicsClaremont Graduate UniversityClaremontUSA

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