Lecture 21 race and economic outcomes

Pure discrimination

employers and employment gatekeeper, coworkers, or customers preferred a group over another. Non-preferred group have fewer employment opportunities, wages below value of what produce for firm

Statistical discrimination

Employers make assumptions about the group a person belongs to (average person in that group)

Self-fulfilling prophecy

a prediction that causes a behavior change that in turn, causes the prediction to become true (Merton 1958)

Bertrand & Mullainathan Study

resumes with white sounding names vs back, white sounding names are 1.5 more likely to get a call back