Statistical discrimination is an economic theory of inequality based on group stereotypes. In its simplest version, individuals are discriminated against because stereotypes are held against the groups they are associated with. This type of preferential treatment is labeled "statistical" because stereotypes may be based on the discriminated group's average behavior. When this is the case, individuals are treated unfairly even when their group are not, on average.
Bibliography
- Glenn Loury, The Anatomy of Racial Inequality, Princeton University Press. Informally illustrates the theory in the context of United States' racial differences.
- Phelps
- Kenneth Arrow
- Coate and Loury
