Implementing Anti-discrimination Policies in Statistical Profiling Models
AbstractHow should statistical models used for assigning prices or eligibility be implemented when there is concern about discrimination? In many settings, factors such as race, gender, and age are prohibited. However, the use of variables that correlate with these omitted characteristics (e.g., zip codes, credit scores) is often contentious. We provide a framework to address these issues and propose a method that can eliminate proxy effects while maintaining predictive accuracy relative to an approach that restricts the use of contentious variables outright. We illustrate the value of our proposed method using data from the Worker Profiling and Reemployment Services system. (JEL C53, J15, J65, J71)
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Bibliographic InfoArticle provided by American Economic Association in its journal American Economic Journal: Economic Policy.
Volume (Year): 3 (2011)
Issue (Month): 3 (August)
Find related papers by JEL classification:
- C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
- J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, and Immigrants; Non-labor Discrimination
- J65 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment Insurance; Severance Pay; Plant Closings
- J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
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- Andersson, Fredrik & Holzer, Harry J. & Lane, Julia & Rosenblum, David & Smith, Jeffrey A., 2013.
"Does Federally-Funded Job Training Work? Nonexperimental Estimates of WIA Training Impacts Using Longitudinal Data on Workers and Firms,"
IZA Discussion Papers
7621, Institute for the Study of Labor (IZA).
- Fredrik Andersson & Harry J. Holzer & Julia I. Lane & David Rosenblum & Jeffrey Smith, 2013. "Does Federally-Funded Job Training Work? Nonexperimental Estimates of WIA Training Impacts Using Longitudinal Data on Workers and Firms," NBER Working Papers 19446, National Bureau of Economic Research, Inc.
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