Statistical Discrimination with Peer Effects: Can Integration Eliminate Negative Stereotypes?

We introduce peer effects in the costs of human capital acquisition into a model of statistical discrimination in labour markets. This creates a link between the level of segregation in social networks and racial disparities in job assignment and wages. We show that this relationship is characterize...

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Bibliographic Details
Main Authors: Chaudhuri, Shubham, Sethi, Rajiv
Language:EN
Published: 2012
Subjects:
Online Access:http://hdl.handle.net/10986/5509