Working Paper: NBER ID: w15860
Authors: Hanming Fang; Andrea Moro
Abstract: This chapter surveys the theoretical literature on statistical discrimination and affirmative action. This literature suggests different explanations for the existence and persistence of group inequality. This survey highlights such differences and describes in these contexts the effects of color-sighted and color-blind affirmative action policies, and the efficiency implications of discriminatory outcomes.
Keywords: Statistical Discrimination; Affirmative Action; Group Inequality
JEL Codes: J15; J16; J7; J71; J78
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Employers' reliance on group averages as proxies for individual productivity (J79) | Differential treatment based on perceived group characteristics (J71) |
| Group identity (J15) | Wage differentials (J31) |
| Affirmative action policies (J78) | Expectations and behaviors of employers (J29) |
| Expectations and behaviors of employers (J29) | Wages for historically disadvantaged groups (J78) |
| Affirmative action policies (J78) | Wage differentials (J31) |