Employment or admission â€œgoalsâ€ are often preferred to affirmative action as a way of obtaining diversity. By constructing a simple model of employerâ€ auditor interaction, I show that when an auditor has imperfect information regarding employersâ€™ proclivities to discriminate and the fraction of qualified minorities in each employerâ€™s applicant pool, goals are synonymous with quotas. Technically speaking, any equilibrium of the auditing game involves a nonempty set of employers who hire so that they do not trigger an audit by rejecting qualified nonminorities, hiring unqualified minorities, or both. Further, under some assumptions, explicit quotas (those mandated by an auditor) are more efficient than implicit quotas (goals settled on in equilibrium by employers wishing to avoid an audit).
|Date of creation:||2009|
|Date of revision:|
|Publication status:||Published in Journal of Legal Studies|
|Contact details of provider:|| Postal: Littauer Center, Cambridge, MA 02138|
Web page: http://www.economics.harvard.edu/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Peter Bardsley, 1994.
"Tax Compliance games with Imperfect Auditing,"
1994.22, School of Economics, La Trobe University.
- Roland Fryer & Glenn C. Loury & Tolga Yuret, 2003.
"Color-Blind Affirmative Action,"
NBER Working Papers
10103, National Bureau of Economic Research, Inc.
- Roland G. Freyer, Jr. & Glenn C. Loury & Tolga Yuret, 2003. "Color Blind Affirmative Action," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-131, Boston University - Department of Economics.
- Drew Fudenberg & Jean Tirole, 1991. "Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262061414.
- Roland G. Fryer, Jr. & Glenn C. Loury, 2005.
"Affirmative Action and Its Mythology,"
NBER Working Papers
11464, National Bureau of Economic Research, Inc.
- Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, Oxford University Press, vol. 87(3), pages 355-374.
- Brian Erard & Jonathan S. Feinstein, 1994.
"Honesty and Evasion in the Tax Compliance Game,"
RAND Journal of Economics,
The RAND Corporation, vol. 25(1), pages 1-19, Spring.
When requesting a correction, please mention this item's handle: RePEc:hrv:faseco:2940155. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Office for Scholarly Communication)
If references are entirely missing, you can add them using this form.