statistical discrimination
“Statistical discrimination” is the term used to describe the practice of judging people by reference to the overall characteristics of the group to which they belong. For example, the once common practice of redlining – charging more for services, such as credit, to people who live in a particular area without regard to their own specific credit history – was outlawed in the United States by the Community Reinvestment Act of 1977.
Injustice to individuals is inherent in any application of statistical discrimination. Even if it is true that the redlined district displays higher rates of default than the general population, some, perhaps many, individuals who live there could be relied on to pay their debts. Moreover redlining certainly had the effect, and may have had the intention, of discriminating against African-Americans. Statistical discrimination may in practice be a mechanism for indirectly implementing policies which if instituted openly would be illegal or otherwise unacceptable. We may wish the police to be more effective in clearing up crimes, but we don’t want them to do this by “rounding up the usual suspects”.[5] A civilised society treats people as individuals, not as drawings from a statistical distribution.
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