Readings on statistical discrimination and inefficiency

A tweet by Sarah Jacobson prompted a few discussion threads on current perspectives on statistical discrimination and efficiency/inefficiency. Here is the original tweet:

I have collected references to some of the papers that discussants mentioned as providing more refined takes on the original Arrow and Aigner-Cain analyses:

  • Lundberg, Shelly J., and Richard Startz. “Private discrimination and social intervention in competitive labor market.” The American Economic Review 73.3 (1983): 340-347.
  • Schwab, Stewart. “Is statistical discrimination efficient?.” The American Economic Review 76.1 (1986): 228-234.
  • Coate, Stephen, and Glenn C. Loury. “Will affirmative-action policies eliminate negative stereotypes?.” The American Economic Review (1993): 1220-1240.
  • Bohren, J. Aislinn, et al. Inaccurate statistical discrimination. No. w25935. National Bureau of Economic Research, 2019.
  • Lang, Kevin, and Ariella Kahn-Lang Spitzer. “Race discrimination: An economic perspective.” Journal of Economic Perspectives 34.2 (2020): 68-89.
  • Komiyama, Junpei, and Shunya Noda. “On Statistical Discrimination as a Failure of Social Learning: A Multi-Armed Bandit Approach.” arXiv preprint arXiv:2010.01079 (2020).
  • Fosgerau, Mogens and Sethi, Rajiv and Weibull, Jorgen W., Costly Screening and Categorical Inequality (April 21, 2021). Available at SSRN: or