YALE DEPARTMENT OF ECONOMICS
EMPLOYER LEARNING, STATISTICAL DISCRIMINATION Joseph G. Altonji September 2005 I examine the implications of employer learning and statistical
discrimination for initial employment rates, wages, and occupational attainment and for
wage growth and occupational change over a career using a model in which the sensitivity
of productivity to worker skill is increasing in the skill requirements of the job and in
which employers learn about worker skill more rapidly in high skill jobs. I show that
statistical discrimination influences initial employment rates, wage levels and job type,
and that employers' initial estimate of productivity influences wage growth even in an
environment in which access to training is not an issue. The implication is that the
market may be slow to learn that a worker is highly skilled if worker's best early job
opportunity given the information available to employers is a low skill level job that
reveals little about the worker's talent. |