Statistical discrimination is a theorized behavior in which group inequality arises when economic agents (consumers, workers, employers, etc.)
[1] According to this theory, inequality may exist and persist between demographic groups even when economic agents are rational.
[6] A related form of statistical discrimination is based on differences in the signals that applicants send to employers.
[8] Even assuming two theoretically identical groups (in all respects, including average and variance), a risk averse decision maker will prefer the group for which a measurement (signal, test) exists that minimizes the signal error term.
[10] Market forces are expected to penalize some forms of statistical discrimination; for example, a company capable and willing to test its job applicants on relevant metrics is expected to do better than one that relies only on group averages for employment decisions.