Byron Auguste: observation

Transcript context

…But labor markets are, in general, based on statistical discrimination, right? So, what’s the metric we should use for deciding which measures of statistical discrimination are dumb and which are smart? Labor markets look like statistical discrimination when you look at them at the market level. But at the level of the point of hiring, the question is, you have to, typically — particularly when you’re hiring on a digital platform where you might have hundreds of people apply for your jobs — you do have to shortlist people. There is some form of screening based on some sort of signal that is required just from a transaction-cost standpoint. But these days, there are so many better ways to do it than a bachelor’s degree. Twenty-five years ago, when you needed to just have a keyword search, fine. But now you could post the training that you do for your own people once they have the job, and see who could do the first three modules of the training, and give them an interview. There are so many different ways, but the point is you should screen in based on skills, not screen out based on pedigree. That’s the fundamental issue. How will we get or retrain more young men to be willing to train to be nurses or do eldercare?…

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