Affirmative Action in Hierarchies
AbstractIf promotion in a hierarchy is based on a random signal of ability, rates of promotion will be affected by risk-taking. Further, the numbers and abilities of risk-takers and non-risk-takers will be different at each stage of the hierarchy, and the ratio will be changing. I show that, under mild conditions, more risk-takers than non-risk-takers will survive at early stages, but they will have lower ability. At later stages, this will be reversed: Fewer risk-takers than non-risk-takers survive, but they will have higher ability. I give several interpretations for how these theorems relate to affirmative action, in light of considerable evidence that males are more risk-taking than females.
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Bibliographic InfoPaper provided by Department of Economics, Institute for Business and Economic Research, UC Berkeley in its series Department of Economics, Working Paper Series with number qt12j9d7c1.
Date of creation: 01 Jan 2003
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labor markets; affirmative action; hierarchy; risk-taking; Social and Behavioral Sciences;
Other versions of this item:
- Suzanne Scotchmer, 2005. "Affirmative Action in Hierarchies," NBER Working Papers 11213, National Bureau of Economic Research, Inc.
- Scotchmer, Suzanne, 2003. "Affirmative Action in Hierarchies," Department of Economics, Working Paper Series qt2tt598kt, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Suzanne Scotchmer, 2003. "Affirmative Action in Hierarchies," Industrial Organization 0303005, EconWPA.
- J7 - Labor and Demographic Economics - - Labor Discrimination
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