TY  - JOUR
AU  - Fryer,Roland G., Jr.
TI  - Belief Flipping in a Dynamic Model of Statistical Discrimination
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 12174
PY  - 2006
Y2  - April 2006
UR  - http://www.nber.org/papers/w12174
L1  - http://www.nber.org/papers/w12174.pdf
N1  - Author contact info:
Roland G. Fryer, Jr
Department of Economics
Harvard University
Littauer Center 208
Cambridge, MA  02138
Tel: 617/495-9592
Fax: 617/495-8570
E-Mail: rfryer@fas.harvard.edu
AB  - 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.
ER  -