Incomplete information gives rise to ________________ when wages and hiring are based in part on group characteristics.

Question

Quizplus · Accepted Answer

Incomplete information can lead to statistical discrimination, which occurs when employers use group characteristics (such as race, gender, or education level) as a proxy for individual productivity. This can result in some individuals being unfairly excluded or underpaid based on their group membership. Comprehensive discrimination, employer discrimination, and taste-based discrimination are not specific types that arise from incomplete information.

Incomplete Information Gives Rise to ________________ When Wages and Hiring