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- W3090587848 abstract "We analyze statistical discrimination in hiring markets using a multi-armed bandit model. Myopic firms face workers arriving with heterogeneous observable characteristics. The association between the worker's skill and characteristics is unknown ex ante; thus, firms need to learn it. Laissez-faire causes perpetual underestimation: minority workers are rarely hired, and therefore, the underestimation tends to persist. Even a marginal imbalance in the population ratio frequently results in perpetual underestimation. We propose two policy solutions: a novel subsidy rule (the hybrid mechanism) and the Rooney Rule. Our results indicate that temporary affirmative actions effectively alleviate discrimination stemming from insufficient data." @default.
- W3090587848 created "2020-10-08" @default.
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- W3090587848 date "2020-10-02" @default.
- W3090587848 modified "2023-09-23" @default.
- W3090587848 title "On Statistical Discrimination as a Failure of Social Learning: A Multi-Armed Bandit Approach" @default.
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- W3090587848 doi "https://doi.org/10.48550/arxiv.2010.01079" @default.
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