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The incentive effects of affirmative action in a real-effort tournament

  • Calsamiglia, Caterina
  • Franke, Jörg
  • Rey-Biel, Pedro

Affirmative action policies bias tournament rules in order to provide equal opportunities to a group of competitors who have a disadvantage they cannot be held responsible for. Its implementation affects the underlying incentive structure which might induce lower performance by participants, and additionally result in a selected pool of tournament winners that is less efficient. In this paper, we study the empirical validity of such concerns in a case where the disadvantage affects capacities to compete. We conducted real-effort tournaments between pairs of children from two similar schools who systematically differed in how much training they received ex-ante on the task at hand. Contrary to the expressed concerns, our results show that the implementation of affirmative action did not result in a significant performance loss for either advantaged or disadvantaged subjects; instead it rather enhanced the performance for a large group of participants. Moreover, affirmative action resulted in a more equitable tournament winner pool where half of the selected tournament winners came from the originally disadvantaged group. Hence, the negative selection effects due to the biased tournament rules were (at least partially) offset by performance enhancing incentive effects.

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Article provided by Elsevier in its journal Journal of Public Economics.

Volume (Year): 98 (2013)
Issue (Month): C ()
Pages: 15-31

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Handle: RePEc:eee:pubeco:v:98:y:2013:i:c:p:15-31
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505578

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  1. Caterina Calsamiglia, 2009. "Decentralizing Equality Of Opportunity," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 50(1), pages 273-290, 02.
  2. Jörg Franke, 2007. "Does Affirmative Action Reduce Effort Incentives? A Contest Game Analysis," UFAE and IAE Working Papers 711.07, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  3. José Apesteguia & Ignacio Palacios-Huerta, 2008. "Psychological Pressure in Competitive Environments: Evidence from a Randomized Natural Experiment," Working Papers 361, Barcelona Graduate School of Economics.
  4. Marion, Justin, 2007. "Are bid preferences benign? The effect of small business subsidies in highway procurement auctions," Journal of Public Economics, Elsevier, vol. 91(7-8), pages 1591-1624, August.
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