NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Kareem Haggag

Social and Decision Sciences
Carnegie Mellon University
Porter Hall 208-H
5000 Forbes Avenue
Pittsburgh, PA 15213

E-Mail: EmailAddress: hidden: you can email any NBER-related person as first underscore last at nber dot org
Institutional Affiliation: Carnegie Mellon University

NBER Working Papers and Publications

June 2019Inaccurate Statistical Discrimination
with J. Aislinn Bohren, Alex Imas, Devin G. Pope: w25935
Discrimination has been widely studied in economics and other disciplines. In addition to identifying evidence of discrimination, economists often categorize the source of discrimination as either taste-based or statistical. Categorizing discrimination in this way can be valuable for policy design and welfare analysis. We argue that a further categorization is important and needed. Specifically, in many situations economic agents may have inaccurate beliefs about the expected productivity or performance of a social group. This motivates our proposed distinction between accurate (based on correct beliefs) and inaccurate (based on incorrect beliefs) statistical discrimination. We do a thorough review of the discrimination literature and argue that this distinction is rarely discussed. Using ...
 
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