## A Statistical Theory of Discrimination in Labor Markets |

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ABILITIES OF BLACKS abilities q-values Aigner Ashenfelter assessment of q assumption Black White Figure black workers blacks and whites blacks or women blacks than whites competitive conditional variance D.C. Heath definition of economic demonstrate economic discrimination different pay differential discrimination against blacks DISCRIMINATION IN LABOR distribution of q dummy variable E(q q E(qW equation expected productivity expected value factor of production factors footnote groups of workers hiring imperfect information inequality labor market less reliable Lexington Lexington Books long-run economic discrimination lower McCall mean ability neoclassical Phelps model Phelps's paper population regression Predictions of Productivity predictor Princeton Productivity q Profit Maximization Race and Test Racial Discrimination relative to whites revealed risk aversion risk-discount Slope for Blacks STATISTICAL THEORY subjective assessment tastes for discrimination Test Score THEORY OF DISCRIMINATION Tobin total compensation utility function values of q variable variance of q wage rate white workers y-scores