This type of "hidden hearing loss" paradoxically presents itself as essentially normal hearing in the clinic, where audiograms - the gold-standard for measuring hearing thresholds - are typically conducted in a quiet room.
The reason some forms of hearing loss may go unrecognised in the clinic is that hearing involves a complex partnership between the ear and the brain.
It turns out that the central auditory system can compensate for significant damage to the inner ear by turning up its volume control, partially overcoming the deficiency, said Richard Salvi, from the University at Buffalo in the US.
"But people with this type of damage have difficulty hearing in certain situations, like hearing speech in a noisy room. Their thresholds appear normal. So they're sent home," he said.
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To understand why a hearing test is not identifying a hearing problem it is necessary to follow the auditory pathway as sound-evoked neural signals travel from the ear to the brain, researchers said.
About 95 per cent of sound input to the brain comes from the ear's inner hair cells.
However, this weakened sound-evoked activity is progressively amplified as it travels along the central auditory pathway to the inferior colliculus and onward.
By the time it reaches the auditory cortex, things are hyperactive because the brain has recognised a problem.
"Once the signal gets high enough to activate a few neurons it's like your brain has a hearing aid that turns up the volume," said Salvi.
The perceptual consequences include apparently normal hearing for tests administered in quiet settings, but adding background noise often results in deficits in detecting and recognising sounds.
The study was published in the journal Frontiers in Neuroscience.