Which concept involves using observable attributes to infer productivity differences among workers rather than actual performance data?

• A. Unfair profiling
• B. Stereotyping
• C. Statistical discrimination
• D. Group bias

Answer: (C)

The idea being tested is statistical discrimination. It happens when decisions about an individual’s productivity are made by using observable attributes (like age, gender, race, or other group characteristics) to infer how productive they will be, rather than basing those decisions on that person’s actual performance data. This approach relies on group-level statistics or stereotypes because obtaining precise performance information for each worker is costly or impractical, so you substitute the group’s average without checking the individual’s record.

This is different from stereotyping or profiling in general, which are broader beliefs or labeling, not the specific policy of using group averages to predict individual productivity. It’s also more specific than a general group bias, which refers to prejudiced attitudes that may influence actions but doesn’t necessarily describe the method of estimating productivity from observable attributes.