Working Paper: NBER ID: w1328
Authors: Jonathan S. Leonard
Abstract: Affirmative action may be broadly conceived of as pursuing either the goal of reducing discrimination or that of redistributing jobs and earnings. I attempt to infer the ends of affirmative action policy by analyzing the historical record of enforcement. Optimal enforcement strategies are developed for both the anti-discrimination and the earnings redistribution models, and then compared with new data on the actual targeting of affirmative action compliance reviews during the late 1970s. I find that establishments with very low proportions of minority or female workers are not significantly more likely to be reviewed, but that white-collar intensive establishments are more likely to be reviewed. This indicates the shortcomings of the anti-discrimination model inexplaining the OFCCP's behavior, and suggests the potential usefulness of the earnings redistribution model.
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JEL Codes: No JEL codes provided
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| targeting of compliance reviews by the Office of Federal Contract Compliance Programs (OFCCP) (M55) | outcomes observed (C90) |
| establishments with very low proportions of minority or female workers (J79) | likelihood of being reviewed (Y30) |
| white-collar intensive establishments (L84) | likelihood of being reviewed (Y30) |
| affirmative action (J78) | redistribution of jobs and earnings to minorities and females (J79) |
| establishment characteristics (size, workforce composition) (J21) | likelihood of compliance reviews (K40) |
| larger establishments, particularly those with higher proportions of nonclerical jobs (J29) | likelihood of being reviewed (Y30) |