Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/20069 
Year of Publication: 
2003
Series/Report no.: 
IZA Discussion Papers No. 824
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
This paper is an experimental analysis of the role played by workers? expectations in explaining the puzzling long-run persistence of observed discrimination against certain minorities in the labor market. The experiment provides some evidence supporting the theoretical prediction that unequal outcomes may emerge due to disadvantaged workers? wrong expectations of being discriminated against. However, this effect is not long-lasting, since players learn the true state of nature in later stages of the experiment, failing to generate a Self-Confirming Equilibrium driven by wrong beliefs. The strategy method provides additional evidence that expectations matter.
Subjects: 
experiments
discrimination
workers? expectations
JEL: 
D84
J71
C92
J15
Document Type: 
Working Paper

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