Final answer:
Statistical discrimination results from differences in individual characteristics, influenced by employers using group statistics to make decisions under imperfect information.
Step-by-step explanation:
Statistical discrimination arises from differences in individual characteristics, and it is fundamentally an information problem in contexts such as the labor market. Employers, dealing with imperfect information about the productivity of workers, may use group statistics to make hiring decisions, leading to potential discrimination against individuals based on average characteristics of the group to which they belong. This form of discrimination can be observed across various sectors, including education, employment, housing, and the criminal justice system.