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Promotion signaling, discrimination, and positive discrimination policies

Author

Listed:
  • Marc Gürtler
  • Oliver Gürtler

Abstract

This article studies discrimination in a model in which promotions are used as signals of worker ability. The model can account for statistical and taste‐based discrimination. In the short run, a positive discrimination policy is beneficial for workers in the middle of the ability distribution, because these workers are promoted if and only if the policy is in place. Instead, workers of either high or low ability suffer from the policy. In the long run, the policy benefits all targeted workers. The model can explain empirical findings about the effects of a gender quota on the boards of Norwegian companies.

Suggested Citation

  • Marc Gürtler & Oliver Gürtler, 2019. "Promotion signaling, discrimination, and positive discrimination policies," RAND Journal of Economics, RAND Corporation, vol. 50(4), pages 1004-1027, December.
    • Handle: RePEc:bla:randje:v:50:y:2019:i:4:p:1004-1027
    DOI: 10.1111/1756-2171.12303
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    Cited by:

    1. Mahmoud Mohamed Elsawy & Mohamed Ahmed Elbadawe, 2023. "The Impact of Gender-Based Human Resource Practices on Employee Performance: An Empirical Analysis," International Journal of Business and Management, Canadian Center of Science and Education, vol. 17(6), pages 1-1, February.
    2. Ďuriník, Michal & Morita, Hodaka & Servátka, Maroš & Zhang, Le, 2023. "Promotions and Group Identity," MPRA Paper 119389, University Library of Munich, Germany.
    3. Simon Dato & Andreas Grunewald & Matthias Kräkel, 2021. "Worker visibility and firms' retention policies," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 30(1), pages 168-202, February.
    4. Deutscher, Christian & Gürtler, Marc & Gürtler, Oliver & DeVaro, Jed, 2020. "Firm choice and career success - theory and evidence," European Economic Review, Elsevier, vol. 127(C).
    5. Mubango Hazel & Muziti Petronella & Makwasha Lucia, 2025. "Navigating the Labyrinth of Sticky Floor: Challenges and Strategies in Women’s Career Progression in a Zimbabwean University," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(14), pages 1040-1054, May.
    6. Dato, Simon & Grunewald, Andreas & Kräkel, Matthias & Müller, Daniel, 2016. "Asymmetric employer information, promotions, and the wage policy of firms," Games and Economic Behavior, Elsevier, vol. 100(C), pages 273-300.

    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J78 - Labor and Demographic Economics - - Labor Discrimination - - - Public Policy (including comparable worth)
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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