The Consequences of Being Different: Statistical Discrimination and the School-to-Work Transition

33 Pages Posted: 7 Feb 2011

See all articles by Barbara Mueller

Barbara Mueller

Swiss Federal Institute of Vocational Education and Research

Stefan C. Wolter

Swiss Coordination Centre for Research in Education (SKBF)

Multiple version iconThere are 2 versions of this paper

Date Written: February 1, 2011

Abstract

When information about the true abilities of job-seekers and applicants are hard to get, statistical discrimination by employers can be an efficient strategy in the hiring and wage setting process. But statistical discrimination can induce costs, if labor relations cannot be terminated in the short term and wages are fixed over a certain period. In this paper we use a unique longitudinal survey that follows the PISA 2000 students in their educational and work-life career. We test whether deviance in the PISA test scores from what one would have predicted based on observable characteristics, influences the probability to succeed in the transition from compulsory school into a firm-based apprenticeship and whether it can explain differences of the individual performances during training. Our results suggest that hard-to-get information plays a significant role in the transition, but not always in a symmetric manner.

Keywords: statistical discrimination, school-to-work transition, PISA

JEL Classification: I2, J24, J71

Suggested Citation

Mueller, Barbara and Wolter, Stefan C., The Consequences of Being Different: Statistical Discrimination and the School-to-Work Transition (February 1, 2011). IZA Discussion Paper No. 5474, Available at SSRN: https://ssrn.com/abstract=1756012 or http://dx.doi.org/10.2139/ssrn.1756012

Barbara Mueller

Swiss Federal Institute of Vocational Education and Research ( email )

Kirchlindachstrasse 79
Zollikofen, 3052
Switzerland

Stefan C. Wolter

Swiss Coordination Centre for Research in Education (SKBF) ( email )

CH - 5000 Aarau
Switzerland
+41 62 835 23 90 (Phone)
+41 62 835 23 99 (Fax)

HOME PAGE: http://www.skbf-csre.ch

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