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Statistical Discrimination and Affirmative Action in the Lab

Dianat, Ahrash and Echenique, Federico and Yariv, Leeat (2018) Statistical Discrimination and Affirmative Action in the Lab. Social Science Working Paper, 1439. California Institute of Technology , Pasadena, CA. (Unpublished) https://resolver.caltech.edu/CaltechAUTHORS:20191018-165505376

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Abstract

We present results from laboratory experiments studying the impacts of affirmative-action policies. We induce statistical discrimination in simple labor-market interactions between rms and workers. We then introduce affirmative-action policies that vary in the size and duration of a subsidy firms receive for hiring discriminated-against workers. These different affirmative-action policies have nearly the same effect and practically eliminate discriminatory hiring practices. However, once lifted, few positive effects remain and discrimination reverts to its initial levels. One exception is lengthy affirmative-action policies, which exhibit somewhat longer-lived effects. Stickiness of beliefs, which we elicit, helps explain the evolution of these outcomes.


Item Type:Report or Paper (Working Paper)
ORCID:
AuthorORCID
Echenique, Federico0000-0002-1567-6770
Additional Information:We thank Richard Sander for very helpful comments. Echenique gratefully acknowledges the support of NSF grants SES-1558757 and CNS-1518941. Yariv gratefully acknowledges the support of NSF grant SES-1629613.
Group:Social Science Working Papers
Funders:
Funding AgencyGrant Number
NSFSES-1558757
NSFCNS-1518941
NSFSES-1629613
Series Name:Social Science Working Paper
Issue or Number:1439
Record Number:CaltechAUTHORS:20191018-165505376
Persistent URL:https://resolver.caltech.edu/CaltechAUTHORS:20191018-165505376
Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:99380
Collection:CaltechAUTHORS
Deposited By: Katherine Johnson
Deposited On:18 Oct 2019 23:58
Last Modified:18 Oct 2019 23:58

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