scholarly journals A Model of Occupational Licensing and Statistical Discrimination

2021 ◽  
Author(s):  
Peter Q. Blair ◽  
Bobby W. Chung
2020 ◽  
Vol 4 (1) ◽  
Author(s):  
Steven Raphael

I review the growing body of research that either directly assesses the effect of Ban the Box (BTB) on the employment prospects of those with criminal histories, tests for spillover effects operating through statistical discrimination, or assesses the labor-market impacts of related screening practices. I begin with a theoretical discussion that works through how widespread reluctance to hire those with criminal histories is likely to generate market-level employment and earnings penalties for various groups of workers, and how the size and distribution of these penalties likely depend on the information available to employers. I then turn to a review of research over the past 15 years or so that either directly assesses the impact of BTB or address highly related and relevant research questions. The weight of the empirical evidence suggests that BTB does not improve the employment prospects of those with criminal histories at private-sector employers, although there is some evidence of an improvement in employment prospects in the public sector. Regarding spillover effects operating through statistical discrimination, several studies indicate that BTB harms the employment prospects of African-American men. Furthermore, research on the effects of credit checks, occupational licensing, and drug testing appear to indicate that more information available to the employer improves the employment prospects of African Americans. Collectively, these findings imply that in the absence of objective information, employers place weight on stereotypes about the characteristics of black workers that are generally negative and inaccurate. Expected final online publication date for the Annual Review of Criminology, Volume 4 is January 13, 2021. Please see http://www.annualreviews.org/page/journal/pubdates for revised estimates.


2021 ◽  
Vol 111 ◽  
pp. 201-205
Author(s):  
Peter Q. Blair ◽  
Bobby W. Chung

We develop a model of statistical discrimination in occupational licensing with endogenous occupation selection and wage determination. We find a unique equilibrium with sharp comparative statics. Our key theoretical result is that the licensing premium is higher for workers who are members of demographic groups that face a higher cost of licensing. The predictions of the model can explain, for example, the empirical finding in the literature that occupational licenses that preclude felons close the racial wage gap among men by conferring a higher premium to Black men than to White men (Blair and Chung 2018).


2020 ◽  
Vol 17 (2) ◽  
pp. 349-356
Author(s):  
Kari Kristinsson ◽  
Margret Sigrun Sigurdardottir

Research on immigration has emphasized the role that statistical discrimination plays in hiring decisions. A better understanding of how immigrants overcome this type of discrimination might lead to better interventions to improve their labour market participation. In this paper, we use qualitative interviews to examine how immigrants can reduce statistical discrimination by signalling their similarity to employers in their job applications. Specifically, we find that immigrants who demonstrate signal similarity to employers in the type of education, job experience and religion tend to reduce their statistical discrimination by employers. We suggest how further research can build on these results to provide possible tools for immigrant integration.


Sign in / Sign up

Export Citation Format

Share Document