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Systemic Discrimination: Theory and Measurement

Author

Listed:
  • J. Aislinn Bohren

    (University of Pennsylvania)

  • Peter Hull

    (Brown University)

  • Alex Imas

    (University of Chicago)

Abstract

Economics often defines and measures discrimination as disparities stemming from direct effects of group identity. We develop new tools to model and measure systemic discrimination, defined as disparities stemming from differences in non-group characteristics. Systemic discrimination can arise from differences in signaling technologies and opportunities for skill development. We propose a measure based on a decomposition of total discrimination into direct and systemic components. The measure is illustrated in a series of hiring experiments and a novel Iterated Audit experimental paradigm with real hiring managers. Results highlight how direct discrimination in one domain can drive systemic discrimination in other domains.

Suggested Citation

  • J. Aislinn Bohren & Peter Hull & Alex Imas, 2022. "Systemic Discrimination: Theory and Measurement," PIER Working Paper Archive 22-009, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    • Handle: RePEc:pen:papers:22-009
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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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