Which of the following is an example of statistical discrimination?
A) A firm will not hire any laborer over the age of 50 because of the firm's belief that most workers over 50 are not able to do the job.
B) A restaurant will not hire a Black server because it fears that its customers are discriminatory.
C) A worker chooses not to accept a job offer because the owner of the firm is an expatriate.
D) A school hires only teachers who pass a PRAXIS test of pedagogical knowledge.
E) Only applications from college-educated workers are considered for an opening for CFO.

Question

Quizplus · Accepted Answer

Statistical discrimination occurs when generalizations and assumptions are made about a group and applied to individuals from that group, even if they do not apply to that particular individual. In this case, the firm is assuming that all workers over 50 are not able to do the job, which is a generalization and does not necessarily apply to all workers over 50.

Which of the Following Is an Example of Statistical Discrimination