Asymmetric employer learning and gender-based statistical discrimination in China

Abstract

We test if employers in China learn asymmetrically about worker's productivity and the implication on statistical discrimination against women. Using data from the 2018 survey of China Family Panel Studies (CFPS), we find evidence of asymmetric employer learning for non-college graduate workers. Furthermore, employers statistically discriminate against female workers without college education at time of hiring. This statistical discrimination against women does not decrease over time because asymmetric employer learning is found to occur mostly for men. In contrast, no evidence of employer learning or statistical discrimination against women is found for college graduate workers.