Working Paper: NBER ID: w22014
Authors: Marianne Bertrand; Esther Duflo
Abstract: This article reviews the existing field experimentation literature on the prevalence of discrimination, the consequences of such discrimination, and possible approaches to undermine it. We highlight key gaps in the literature and ripe opportunities for future field work. Section 1 reviews the various experimental methods that have been employed to measure the prevalence of discrimination, most notably audit and correspondence studies; it also describes several other measurement tools commonly used in lab-based work that deserve greater consideration in field research. Section 2 provides an overview of the literature on the costs of being stereotyped or discriminated against, with a focus on self-expectancy effects and self-fulfilling prophecies; section 2 also discusses the thin field-based literature on the consequences of limited diversity in organizations and groups. The final section of the paper, Section 3, reviews the evidence for policies and interventions aimed at weakening discrimination, covering role model and intergroup contact effects, as well as socio-cognitive and technological de-biasing strategies.
Keywords: discrimination; field experiments; audit studies; correspondence studies; labor market
JEL Codes: J0; J01; J1; J15; J16; J7; J71
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Discrimination exists against minority or underrepresented groups (J15) | Minority groups are treated less favorably than majority groups with otherwise identical characteristics (J15) |
| Taste-based discrimination arises from employers' distaste for hiring minorities (J79) | Discrimination (J71) |
| Statistical discrimination stems from employers using group membership as a signal of productivity (J79) | Discrimination (J71) |
| Discrimination (J71) | Minority individuals internalize stereotypes, affecting their performance and opportunities (J15) |
| Limited diversity in organizations (J79) | Discrimination (J71) |
| Minority applicants face systematic disadvantages in hiring processes (J15) | Lower callback rates for minority-sounding names (J79) |
| Higher-quality resumes yield smaller improvements in callback rates for African American candidates compared to their white counterparts (J79) | Persistent racial bias (J15) |