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"Soft" Affirmative Action and Minority Recruitment

Author

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  • Daniel Fershtman
  • Alessandro Pavan
Abstract
We study search, evaluation, and selection of candidates of unknown quality for a position. We examine the effects of "soft" affirmative action policies increasing the relative percentage of minority candidates in the candidate pool. We show that, while meant to encourage minority hiring, such policies may backfire if the evaluation of minority candidates is noisier than that of nonminorities. This may occur even if minorities are at least as qualified and as valuable as nonminorities. The results provide a possible explanation for why certain soft affirmative action policies have proved counterproductive, even in the absence of (implicit) bias.

Suggested Citation

  • Daniel Fershtman & Alessandro Pavan, 2021. ""Soft" Affirmative Action and Minority Recruitment," American Economic Review: Insights, American Economic Association, vol. 3(1), pages 1-18, March.
    • Handle: RePEc:aea:aerins:v:3:y:2021:i:1:p:1-18
    DOI: 10.1257/aeri.20200196
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    References listed on IDEAS

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    1. Moro, Andrea & Norman, Peter, 2003. "Affirmative action in a competitive economy," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 567-594, March.
    2. Welch, Finis, 1976. "Employment Quotas for Minorities," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages 105-139, August.
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    8. Kevin Lang, 1986. "A Language Theory of Discrimination," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 101(2), pages 363-382.
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    11. Coate, Stephen & Loury, Glenn C, 1993. "Will Affirmative-Action Policies Eliminate Negative Stereotypes?," American Economic Review, American Economic Association, vol. 83(5), pages 1220-1240, December.
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    Cited by:

    1. Pavan, Alessandro & Fershtman, Daniel, 2020. "Sequential Learning with Endogenous Consideration Sets," CEPR Discussion Papers 15018, C.E.P.R. Discussion Papers.
    2. Lepage, Louis Pierre, 2021. "Endogenous learning, persistent employer biases, and discrimination," CLEF Working Paper Series 34, Canadian Labour Economics Forum (CLEF), University of Waterloo.
    3. Hossain, Tanjim & Morgan, John, 2022. "Maybe I Should Just Stay Home," MPRA Paper 111761, University Library of Munich, Germany.
    4. Miguel A. Fonseca & Ashley McCrea, 2023. "The role of shortlisting in shifting gender beliefs on performance: experimental evidence," Discussion Papers 2315, University of Exeter, Department of Economics.
    5. Anja Prummer, "undated". "Discrimination in Promotion," Working Papers 905, Queen Mary University of London, School of Economics and Finance.

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    More about this item

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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