Can affirmative action policies be inefficiently persistent?

B-Tier
Journal: European Economic Review
Year: 2024
Volume: 166
Issue: C

Authors (2)

Jehiel, Philippe (Paris School of Economics) Leduc, Mathieu V. (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

We develop a dynamic model where successive, decentralized policy makers must decide whether to implement affirmative action policies aimed at improving the performance of future generations of a targeted group. Employers do not perfectly observe if a worker benefited from affirmative action, but take that possibility into account, resulting in the devaluation of the worker’s credentials and an associated feeling of injustice. We establish that, in equilibrium, affirmative action is implemented perpetually by benevolent policy makers, despite the feeling of injustice that eventually dominates the anticipated benefits. This contrasts with the first best, which requires affirmative action to be temporary.

Technical Details

RePEc Handle
repec:eee:eecrev:v:166:y:2024:i:c:s0014292124000837
Journal Field
General
Author Count
2
Added to Database
2026-01-25