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Experimenting with Affirmative Action: The Coate and Loury Model




Coate and Loury (1993) suggest the impact of affirmative action on a negative stereotype is theoretically ambiguous leading to either: a benign equilibrium in which affirmative action eradicates the negative stereotype and leads to equal proportional representation of the two groups; or alternatively a patronising equilibrium in which the stereotype persists. The current paper examines this theoretical ambiguity within the context of a laboratory experiment. Although benign and patronising equilibria are equally plausible in theory, the laboratory experiments easily replicate most features of the benign equilibrium, but diverge from the theoretically predicted patronising equilibrium. Copyright © 2008 The Economic Society of Australia.

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  • Michael P. Kidd & Paul S. Carlin & Jonathan Pot, 2008. "Experimenting with Affirmative Action: The Coate and Loury Model," The Economic Record, The Economic Society of Australia, vol. 84(266), pages 322-337, September.
  • Handle: RePEc:bla:ecorec:v:84:y:2008:i:266:p:322-337

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    References listed on IDEAS

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    Cited by:

    1. Nick Feltovich & Lata Gangadharan & Michael P. Kidd, 2013. "Implementation and Removal of an Affirmative-Action Quota: The Impact on Task Assignment and Workers' Skill Acquisition," Canadian Public Policy, University of Toronto Press, vol. 39(s1), pages 123-140, May.
    2. Charness, Gary & Kuhn, Peter, 2011. "Lab Labor: What Can Labor Economists Learn from the Lab?," Handbook of Labor Economics, Elsevier.

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