IDEAS home Printed from https://ideas.repec.org/p/arx/papers/1808.09004.html
   My bibliography  Save this paper

Downstream Effects of Affirmative Action

Author

Listed:
  • Sampath Kannan
  • Aaron Roth
  • Juba Ziani

Abstract

We study a two-stage model, in which students are 1) admitted to college on the basis of an entrance exam which is a noisy signal about their qualifications (type), and then 2) those students who were admitted to college can be hired by an employer as a function of their college grades, which are an independently drawn noisy signal of their type. Students are drawn from one of two populations, which might have different type distributions. We assume that the employer at the end of the pipeline is rational, in the sense that it computes a posterior distribution on student type conditional on all information that it has available (college admissions, grades, and group membership), and makes a decision based on posterior expectation. We then study what kinds of fairness goals can be achieved by the college by setting its admissions rule and grading policy. For example, the college might have the goal of guaranteeing equal opportunity across populations: that the probability of passing through the pipeline and being hired by the employer should be independent of group membership, conditioned on type. Alternately, the college might have the goal of incentivizing the employer to have a group blind hiring rule. We show that both goals can be achieved when the college does not report grades. On the other hand, we show that under reasonable conditions, these goals are impossible to achieve even in isolation when the college uses an (even minimally) informative grading policy.

Suggested Citation

  • Sampath Kannan & Aaron Roth & Juba Ziani, 2018. "Downstream Effects of Affirmative Action," Papers 1808.09004, arXiv.org.
  • Handle: RePEc:arx:papers:1808.09004
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/1808.09004
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Daniel Gottlieb & Kent Smetters, 2011. "Grade Non-Disclosure," NBER Working Papers 17465, National Bureau of Economic Research, Inc.
    2. J. Aislinn Bohren & Alex Imas & Michael Rosenberg, 2019. "The Dynamics of Discrimination: Theory and Evidence," American Economic Review, American Economic Association, vol. 109(10), pages 3395-3436, October.
    3. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-661, September.
    4. 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.
    5. Dean P. Foster & Rakesh V. Vohra, 1992. "An Economic Argument for Affirmative Action," Rationality and Society, , vol. 4(2), pages 176-188, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Conde-Ruiz, J. Ignacio & Ganuza, Juan José & Profeta, Paola, 2022. "Statistical discrimination and committees," European Economic Review, Elsevier, vol. 141(C).
    2. Kevin Lang & Ariella Kahn-Lang Spitzer, 2020. "Race Discrimination: An Economic Perspective," Journal of Economic Perspectives, American Economic Association, vol. 34(2), pages 68-89, Spring.
    3. Dianat, Ahrash & Echenique, Federico & Yariv, Leeat, 2022. "Statistical discrimination and affirmative action in the lab," Games and Economic Behavior, Elsevier, vol. 132(C), pages 41-58.
    4. Barron, Kai & Ditlmann, Ruth & Gehrig, Stefan & Schweighofer-Kodritsch, Sebastian, 2020. "Explicit and implicit belief-based gender discrimination: A hiring experiment," Discussion Papers, Research Unit: Economics of Change SP II 2020-306, WZB Berlin Social Science Center.
    5. Islam, Asad & Pakrashi, Debayan & Sahoo, Soubhagya & Wang, Liang Choon & Zenou, Yves, 2021. "Gender inequality and caste: Field experimental evidence from India," Journal of Economic Behavior & Organization, Elsevier, vol. 190(C), pages 111-124.
    6. Ruzzier, Christian A. & Woo, Marcelo D., 2023. "Discrimination with inaccurate beliefs and confirmation bias," Journal of Economic Behavior & Organization, Elsevier, vol. 210(C), pages 379-390.
    7. Lepage, Louis Pierre, 2020. "Endogenous learning and the persistence of employer biases in the labor market," CLEF Working Paper Series 24, Canadian Labour Economics Forum (CLEF), University of Waterloo.
    8. 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.
    9. Moro, Andrea & Norman, Peter, 2004. "A general equilibrium model of statistical discrimination," Journal of Economic Theory, Elsevier, vol. 114(1), pages 1-30, January.
    10. Lepage, Louis Pierre, 2021. "Endogenous learning, persistent employer biases, and discrimination," CLEF Working Paper Series 34, Canadian Labour Economics Forum (CLEF), University of Waterloo.
    11. Laurence Kranich, 2017. "Historical discrimination and optimal remediation," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 48(1), pages 239-265, January.
    12. Ye Zhang, 2020. "Discrimination in the Venture Capital Industry: Evidence from Field Experiments," Papers 2010.16084, arXiv.org, revised Aug 2022.
    13. Klumpp, Tilman & Su, Xuejuan, 2013. "Second-order statistical discrimination," Journal of Public Economics, Elsevier, vol. 97(C), pages 108-116.
    14. Pierre Fleckinger & Matthieu Glachant & Gabrielle Moineville, 2017. "Incentives for Quality in Friendly and Hostile Informational Environments," American Economic Journal: Microeconomics, American Economic Association, vol. 9(1), pages 242-274, February.
    15. 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.
    16. Luojia Hu & Christopher Taber, 2011. "Displacement, Asymmetric Information, and HeterogeneousHuman Capital," Journal of Labor Economics, University of Chicago Press, vol. 29(1), pages 113-152, January.
    17. Fang, Hanming & Norman, Peter, 2001. "Government-Mandated Discriminatory Policies," Working Paper Series 562, Research Institute of Industrial Economics.
    18. J. Michelle Brock & Ralph De Haas, 2023. "Discriminatory Lending: Evidence from Bankers in the Lab," American Economic Journal: Applied Economics, American Economic Association, vol. 15(2), pages 31-68, April.
    19. Aksoy, Billur & Chadd, Ian & Koh, Boon Han, 2023. "Sexual identity, gender, and anticipated discrimination in prosocial behavior," European Economic Review, Elsevier, vol. 154(C).
    20. Arcidiacono, Peter, 2003. "The dynamic implications of search discrimination," Journal of Public Economics, Elsevier, vol. 87(7-8), pages 1681-1706, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:1808.09004. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.