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Statistical Discrimination (economics)
Statistical discrimination is a theorized behavior in which group inequality arises when economic agents (consumers, workers, employers, etc.) have imperfect information about individuals they interact with. According to this theory, inequality may exist and persist between demographic groups even when economic agents are rational. This is distinguished from taste-based discrimination which emphasizes the role of prejudice (sexism, racism, etc.) to explain disparities in labour market outcomes between demographic groups. The theory of statistical discrimination was pioneered by Kenneth Arrow (1973) and Edmund Phelps (1972). The name "statistical discrimination" relates to the way in which employers make employment decisions. Since their information on the applicants' productivity is imperfect, they use statistical information, both current and historical, on the group they belong to in order to infer productivity. If a minority group is less productive initially (due to histor ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economic Theory
Economics () is a behavioral science that studies the production, distribution, and consumption of goods and services. Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics analyses what is viewed as basic elements within economies, including individual agents and markets, their interactions, and the outcomes of interactions. Individual agents may include, for example, households, firms, buyers, and sellers. Macroeconomics analyses economies as systems where production, distribution, consumption, savings, and investment expenditure interact; and the factors of production affecting them, such as: labour, capital, land, and enterprise, inflation, economic growth, and public policies that impact these elements. It also seeks to analyse and describe the global economy. Other broad distinctions within economics include those between positive economics, describing "what is", and normative economics, advo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Taste-based Discrimination
Taste-based discrimination is an economic model of labor market discrimination which argues that employers' prejudice or dislikes in an organisational culture rooted in prohibited grounds can have negative results in hiring minority workers, meaning that they can be said to have a taste for discrimination. The model further posits that employers discriminate against minority applicants to avoid interacting with them, regardless of the applicant's productivity, and that employers are willing to pay a financial penalty to do so. It is one of the two leading theoretical explanations for labor market discrimination, the other being statistical discrimination. The taste-based model further supposes that employers' preference for employees of certain groups is unrelated to their preference for more productive employees. According to this model, employees that are members of a group that is discriminated against may have to work harder for the same wage or accept a lower wage for the s ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Kenneth Arrow
Kenneth Joseph Arrow (August 23, 1921 – February 21, 2017) was an American economist, mathematician and political theorist. He received the John Bates Clark Medal in 1957, and the Nobel Memorial Prize in Economic Sciences in 1972, along with John Hicks. In economics, Arrow was a major figure in postwar neoclassical economic theory. Four of his students (Roger Myerson, Eric Maskin, John Harsanyi, and Michael Spence) went on to become Nobel laureates themselves. His contributions to social choice theory, notably his " impossibility theorem", and his work on general equilibrium analysis are significant. His work in many other areas of economics, including endogenous growth theory and the economics of information, was also foundational. Education and early career Arrow was born on August 23, 1921, in New York City. Arrow's mother, Lilian (Greenberg), was from Iași, Romania, and his father, Harry Arrow, was from nearby Podu Iloaiei. The family was of Romanian-Jewish desc ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Edmund Phelps
Edmund Strother Phelps (born July 26, 1933) is an American economist and the recipient of the 2006 Nobel Memorial Prize in Economic Sciences. Early in his career, he became known for his research at Yale's Cowles Foundation in the first half of the 1960s on the sources of economic growth. His demonstration of the golden rule savings rate, a concept related to work by John von Neumann, started a wave of research on how much a nation should spend on present consumption rather than save and invest for future generations. Phelps was at the University of Pennsylvania from 1966 to 1971 and moved to Columbia University in 1971. His most seminal work inserted a microfoundation, one featuring imperfect information, incomplete knowledge and expectations about wages and prices, to support a macroeconomic theory of employment determination and price-wage dynamics. That led to his development of the natural rate of unemployment: its existence and the mechanism governing its size. In the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Vicious Circle
A vicious circle (or cycle) is a complex chain of events that reinforces itself through a feedback loop, with detrimental results. It is a system with no tendency toward equilibrium (social, economic, ecological, etc.), at least in the short run. Each iteration of the cycle reinforces the previous one, in an example of positive feedback. A vicious circle will continue in the direction of its momentum until an external factor intervenes to break the cycle. A well-known example of a vicious circle in economics is hyperinflation. When the results are not detrimental but beneficial, the term virtuous cycle is used instead. Examples Subprime mortgage crisis The contemporary subprime mortgage crisis is a complex group of vicious circles, both in its genesis and in its manifold outcomes, most notably the late 2000s recession. A specific example is the circle related to housing. As housing prices decline, more homeowners go " underwater", when the market value of a home drop ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Regression To The Mean
Regression or regressions may refer to: Arts and entertainment * ''Regression'' (film), a 2015 horror film by Alejandro Amenábar, starring Ethan Hawke and Emma Watson * ''Regression'' (magazine), an Australian punk rock fanzine (1982–1984) * ''Regressions'' (album), 2010 album by Cleric Computing * Software regression, the appearance of a bug in functionality that was working correctly in a previous revision ** Regression testing, a software testing method which seeks to uncover regression bugs Hypnosis * Age regression in therapy, a process claiming to retrieve memories * Past life regression, a process claiming to retrieve memories of previous lives Science * Marine regression, coastal advance due to falling sea level, the opposite of marine transgression * Regression (medicine), a characteristic of diseases to express lighter symptoms or less extent (mainly for tumors), without disappearing totally * Regression (psychology), a defensive reaction to some unaccepted ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Variance
In probability theory and statistics, variance is the expected value of the squared deviation from the mean of a random variable. The standard deviation (SD) is obtained as the square root of the variance. Variance is a measure of dispersion, meaning it is a measure of how far a set of numbers is spread out from their average value. It is the second central moment of a distribution, and the covariance of the random variable with itself, and it is often represented by \sigma^2, s^2, \operatorname(X), V(X), or \mathbb(X). An advantage of variance as a measure of dispersion is that it is more amenable to algebraic manipulation than other measures of dispersion such as the expected absolute deviation; for example, the variance of a sum of uncorrelated random variables is equal to the sum of their variances. A disadvantage of the variance for practical applications is that, unlike the standard deviation, its units differ from the random variable, which is why the standard devi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Risk Averse
In economics and finance, risk aversion is the tendency of people to prefer outcomes with low uncertainty to those outcomes with high uncertainty, even if the average outcome of the latter is equal to or higher in monetary value than the more certain outcome. Risk aversion explains the inclination to agree to a situation with a lower average payoff that is more predictable rather than another situation with a less predictable payoff that is higher on average. For example, a risk-averse investor might choose to put their money into a bank account with a low but guaranteed interest rate, rather than into a stock that may have high expected returns, but also involves a chance of losing value. Example A person is given the choice between two scenarios: one with a guaranteed payoff, and one with a risky payoff with same average value. In the former scenario, the person receives $50. In the uncertain scenario, a coin is flipped to decide whether the person receives $100 or nothing. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Error Term
In mathematics and statistics, an error term is an additive type of error. In writing, an error term is an instance of faulty language or grammar. Common examples include: * errors and residuals in statistics, e.g. in linear regression * the error term in numerical integration In analysis, numerical integration comprises a broad family of algorithms for calculating the numerical value of a definite integral. The term numerical quadrature (often abbreviated to quadrature) is more or less a synonym for "numerical integr ... {{sia, mathematics Error measures ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Mortgage Discrimination
Mortgage discrimination or ''mortgage lending discrimination'' is the practice of banks, governments or other lending institutions denying loans to one or more groups of people primarily on the basis of race, ethnic origin, sex or religion. Instances of mortgage discrimination occurred in United States inner city neighborhoods from the 1930s and there is evidence that the practice continues to a degree in the United States today.Study Finds Disparities in Mortgages by Race' The New York Times By MANNY FERNANDEZ Published: October 15, 2007 In the United States, banks practiced redlining or denial of financial services including banking or insurance to residents of areas based upon the racial or ethnic composition of those areas, either directly or through selectively raising prices. Prior to the passage of the 1974 Equal Credit Opportunity Act and Housing and Community Development Act, lenders and the U.S. federal government frequently and explicitly discriminated against female mo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
African Americans
African Americans, also known as Black Americans and formerly also called Afro-Americans, are an American racial and ethnic group that consists of Americans who have total or partial ancestry from any of the Black racial groups of Africa. African Americans constitute the second largest ethno-racial group in the U.S. after White Americans. The term "African American" generally denotes descendants of Africans enslaved in the United States. In 2023, an estimated 48.3 million people self-identified as Black, making up 14.4% of the country’s population. This marks a 33% increase since 2000, when there were 36.2 million Black people living in the U.S. African-American history began in the 16th century, with Africans being sold to European slave traders and transported across the Atlantic to the Western Hemisphere. They were sold as slaves to European colonists and put to work on plantations, particularly in the southern colonies. A few were able to achieve freedom th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
