Statistical discrimination and affirmative action in the lab

B-Tier
Journal: Games and Economic Behavior
Year: 2022
Volume: 132
Issue: C
Pages: 41-58

Authors (3)

Dianat, Ahrash (not in RePEc) Echenique, Federico (University of California-Berke...) Yariv, Leeat (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We present results from laboratory experiments studying statistical discrimination and affirmative action. We induce statistical discrimination in simple labor-market interactions between firms and workers. We then introduce affirmative-action policies that vary in the size and duration of a subsidy that 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 observed outcomes.

Technical Details

RePEc Handle
repec:eee:gamebe:v:132:y:2022:i:c:p:41-58
Journal Field
Theory
Author Count
3
Added to Database
2026-01-25