Theories of Statistical Discrimination and Affirmative Action: A Survey

Hanming, Fang; Moro, Andrea

doi:10.1016/b978-0-444-53187-2.00005-x

Cited by 216 publications

(157 citation statements)

References 54 publications

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“…If employers were not allowed to use race as a source of information, production would not increase, but this is due to the extreme simplicity of the model. See Fang and Moro (2011) for details.…”

Section: Environmentmentioning

confidence: 99%

Do Female Executives Make a Difference? The Impact of Female Leadership on Gender Gaps and Firm Performance

Flabbi¹,

Macis²,

Moro³

et al. 2016

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We investigate the effects of female executives on gender-specific wage distributions and firm performance. We find that female leadership has a positive impact at the top of the female wage distribution and a negative impact at the bottom. Moreover, the impact of female leadership on firm performance increases with the share of female workers. Our empirical strategy accounts for the endogeneity induced by the non-random assignment of executives to firms by including in the regressions firm fixed effects, by generating controls from a two-way fixed effects regression, and by building instruments based on regional trends. The empirical findings are consistent with a model of statistical discrimination where female executives are better equipped at interpreting signals of productivity from female workers. The evidence suggests substantial costs of underrepresentation of women at the top of the corporate hierarchy AbstractWe investigate the effects of female executives on gender-specific wage distributions and firm performance. We find that female leadership has a positive impact at the top of the female wage distribution and a negative impact at the bottom. Moreover, the impact of female leadership on firm performance increases with the share of female workers. Our empirical strategy accounts for the endogeneity induced by the non-random assignment of executives to firms by including in the regressions firm fixed effects, by generating controls from a two-way fixed effects regression, and by building instruments based on regional trends. The empirical findings are consistent with a model of statistical discrimination where female executives are better equipped at interpreting signals of productivity from female workers. The evidence suggests substantial costs of under-representation of women at the top of the corporate hierarchy.JEL Codes: M5, M12, J7, J16.

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Section: Environmentmentioning

confidence: 99%

Do Female Executives Make a Difference? The Impact of Female Leadership on Gender Gaps and Firm Performance

Flabbi¹,

Macis²,

Moro³

et al. 2016

Self Cite

View full text Add to dashboard Cite

show abstract

“…Note also that in our model discrimination is according to an acquired trait, such as the 19 See for example Sacerdote (2011) 20 For a survey on models of statistical discrimination see Fang and Moro (2010 (2004) show how information about job opportunities ‡ows in some networks but not in others, resulting in discrimination. This is also related to the literature on identity, as in Akerlof and Kranton (2000).…”

mentioning

confidence: 99%

The Coevolution of Segregation, Polarized Beliefs, and Discrimination: The Case of Private versus State Education

Levy

Razin

2017

American Economic Journal: Microeconomics

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Abstract:In this paper we analyze the coevolution of segregation into private and state schools, beliefs about the educational merits of di¤erent schools, and labour market discrimination. In a dynamic model, we characterize a necessary and su¢ cient condition on initial levels of segregation and beliefs under which full polarisation of beliefs and long run labour market discrimination are sustainable. The model suggests a new perspective on the long term e¤ects of di¤erent policy interventions, such as integration, school vouchers and policies that are directly targeted towards in ‡uencing beliefs.

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“…As a result, our understanding of the evolution of stereotypes remains relatively poor, as summarized in Fang and Moro (2011). Nevertheless, there have been several important developments in recent years that are worthy of discussion in relation to our dynamic model.…”

Section: Relevant Literaturementioning

confidence: 99%

“…Therefore, the disadvantaged group can recover its reputation through collective 6 The critical levelβ is also derived from the differential equations in Theorem 1. Once the time τ return from skill investment (β τ ) is enhanced, owing to the affirmative action program, the group's reputation can recover, with its state moving from state ((δ + λ )c m , Π l ) to state (ωP u + ω , Π * ) in the phase diagram along the optimistic equilibrium path.…”

Section: Favorable Hiring Standardmentioning

confidence: 99%

Collective Reputation and the Dynamics of Statistical Discrimination

Loury

Kim

2014

SSRN Journal

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Economists have developed theoretical models identifying self-fulfilling expectations as an important source of statistical discrimination practices in labor markets (Arrow, 1973). The static models dominating the literature of statistical discrimination, however, may leave the false impression that a bad equilibrium is as fragile as a "bubble" and can burst at any moment when expectations flip. Such models thus understate the adversity that disadvantaged groups face in seeking to escape bad equilibria. By developing a dynamic version of a statistical discrimination model based on Coate and Loury's (1993) original setup, we clarify the limits of expectations-related fragility. We show that when a group is strongly affected by negative reputational externalities, the group cannot escape a low skill investment trap, regardless of how expectations are formed. By examining the evolution of stereotypes in this way, we also provide new insights into egalitarian policies.

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Theories of Statistical Discrimination and Affirmative Action: A Survey

Cited by 216 publications

References 54 publications

Do Female Executives Make a Difference? The Impact of Female Leadership on Gender Gaps and Firm Performance

Do Female Executives Make a Difference? The Impact of Female Leadership on Gender Gaps and Firm Performance

The Coevolution of Segregation, Polarized Beliefs, and Discrimination: The Case of Private versus State Education

Collective Reputation and the Dynamics of Statistical Discrimination

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