Template-Type: ReDIF-Paper 1.0 Author-Name: Richard Chisik Author-X-Name-First: Richard Author-X-Name-Last: Chisik Author-Email: rchisik@economics.ryerson.ca Author-Workplace-Name: Department of Economics, Ryerson University, Toronto, Canada Title: Job Market Signalling, Stereotype Threat, and Counter-Stereotypical Behaviour. Abstract: ABSTRACT: We introduce stereotype threat in a multiple-productivity signalling model. Existence of multiple self-fulfilling stereotypes, which can generate statistical discrimination, is more likely if there is less variance in the ability distribution. A low endogenously-correct stereotype about a group forces higher-ability group members to choose a higher-productivity and a higher separating signal, thereby engaging in counter-stereotypical behaviour. This counter-stereotypical behaviour causes the remaining partially-pooling group to have lower average productivity, reinforcing the negative stereotype. The co-existence of stereotype threat and counter-stereotypical behaviour can explain the simultaneity of lower wages and higher education attainment in a group facing labour-market discrimination. Classification-JEL: J70, D82, O15 Keywords: Length: 32 pages Creation-Date: 2010-08 Revision-Date: 2013-10 Number: 024 File-URL: http://economics.ryerson.ca/workingpapers/wp024.pdf File-Format: Application/pdf Handle: RePEc:rye:wpaper:wp024