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

32 Pages Posted: 14 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); University of Bern - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute); IZA Institute of Labor Economics

Multiple version iconThere are 2 versions of this paper

Date Written: February 14, 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: I200, J240, J710

Suggested Citation

Mueller, Barbara and Wolter, Stefan C., The Consequences of Being Different - Statistical Discrimination and the School-to-Work Transition (February 14, 2011). CESifo Working Paper Series No. 3345. Available at SSRN: https://ssrn.com/abstract=1761216

Barbara Mueller

Swiss Federal Institute of Vocational Education and Research ( email )

Kirchlindachstrasse 79
Zollikofen, 3052
Switzerland

Stefan C. Wolter (Contact Author)

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

University of Bern - Department of Economics ( email )

Gesellschaftstrasse 49
Bern, CH-3012
Switzerland
+41 31 631 40 95 (Phone)
+41 31 631 39 92 (Fax)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Register to save articles to
your library

Register

Paper statistics

Downloads
27
Abstract Views
456
PlumX Metrics