Question

What is statistical discrimination? Give a sports-based example.

Answer 1

This is an economic theory of explaining gender inequality or racial inequality in a work area. Such theory is just an attempt to understand the discriminating category where there is no specific information. A decision-maker uses this system in order to make sure about a person’s productivity, not having criminal background, and character.   

Example: Coach of a football team wants some laborious footballers who will give 100% in practice. He has believed that people having a particular color complexion will serve that purpose. He started hiring those people.