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Follow us Statistical Discrimination, Identity Selection, and the Social Transformation of Caste and Race
Bloch, Francis, and Vijayendra Rao. 1993. "Statistical Discrimination, Identity Selection, and the Social Transformation of Caste and Race." PSC Research Report No. 93-276. April 1993.
This paper analyzes a model of statistical discrimination where members of the minority group can choose to adopt a social behavior identified with the dominant group. This social behavior, even though it is unrelated to productivity, can be used as a screening device by employers. In equilibrium, high productivity minority workers choose to assimilate with the dominant group while low productivity minority workers are further isolated from the mainstream.
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