If employers have imperfect information about job applicants, it may be rational for them to use

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When employers have imperfect information about job applicants, it means that they do not have complete knowledge about the skills, qualifications, and experience of the job candidate, which may lead to biases and discrimination. In such situations, it may be rational for employers to use statistical discrimination, which involves using observable characteristics such as race, ethnicity, gender, or age to make inferences about the unobserved characteristics of the candidates. While it may not be an ideal approach, statistical discrimination can be an effective way to manage risks associated with imperfect information. However, using employer prejudice, worker prejudice, or consumer prejudice can lead to unfair and discriminatory practices.

If Employers Have Imperfect Information About Job Applicants, It May