Experience-based discrimination: classroom games.(Economic Instruction)

Abstract: The authors not absent a simple classroom game in which scholars are randomly designated as employer purple workers, or virid workers. This environment may generate "statistical" discrimination if workers of individual color tend not to invest because they anticipate lower opportunities in the labor market, and these beliefs are self-confirming as employer learn that it is, upon average, less profitable to hire workers of that color. similar discriminatory equilibria may arise level when workers are ex-ante identical, and the employer has no prior information regarding