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Systemic Discrimination: Theory and Measurement

Author

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  • J. Aislinn Bohren
  • Peter Hull
  • Alex Imas

Abstract

Economists often measure discrimination as disparities arising from the direct effects of group identity. We develop new tools to model and measure systemic discrimination, which instead captures how discrimination in other decisions indirectly contributes to disparities. We propose an experimental design, the Iterated Audit, to identify systemic discrimination. We then illustrate these new tools in two field experiments. The first experiment shows how racial discrimination accumulates across multiple rounds of hiring through the interaction of two forces: greater discrimination against inexperienced workers—which affects the opportunity to obtain experience—and high subsequent returns to experience. The second experiment shows how gender-based differences in the language of recommendation letters can translate into systemic gender discrimination in STEM hiring. We discuss how our findings qualify previous results on direct discrimination and outline how our tools can be used to target policy interventions.

Suggested Citation

  • J. Aislinn Bohren & Peter Hull & Alex Imas, 2022. "Systemic Discrimination: Theory and Measurement," NBER Working Papers 29820, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:29820
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    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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