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A Classroom Labor Market Game Illustrating the Existence, and Implications of, Statistical Discrimination

Many undergraduate students report a lack of concern about facing labor market discrimination throughout their careers. However, there is ample evidence that discrimination based on race, gender, and age still persists within the labor market. The author outlines a classroom experiment demonstrating the existence of discrimination, even when the participants consider themselves above discriminating against others. The results can be used to facilitate discussions surrounding various labor market outcomes and the prevalence of discrimination within labor markets. As such, this experiment is appropriate for many business courses, including courses in economics, management, and ethics.