12/27/2022 0 Comments Assume that for the last worker hired![]() ![]() In spite of the voluntary compliance design it has, previous studies have found that Affirmative Action regulation in the labor market has positive effects in equalizing employment rates for women and minorities with respect to white men. However, many questions about this regulation remain open: does Affirmative Action affect workers only when they work for a regulated firm or can the regulation impact them even after that? If effects persist, are they all positive? For how long and how are they propagated? There is substantive evidence that Affirmative Action regulation has played an important role in reducing differences in wage and in unemployment rates between white men and women, and between majority and minority workers. So even if the worker is hired and promoted because of his performance, he may find hard to convince other employers of his skills, probably even more so than in the absence of Affirmative Action. ![]() Instead, employers assume that the minority worker was hired to comply with the regulation. Now suppose that firms assume that if the job is held at a firm that is regulated, then the worker is actually not as good as majority workers with his credentials. In this case, Affirmative Action fulfills its purpose. This credential may give him an advantage to move forward as other firms may now disregard the label and offer him a new job helping him climb the ladder. Indeed, once he holds a job at a regulated firm, he possesses a new signal that can outweigh the “minority” label that he carries. In this scenario, a minority worker would potentially benefit significantly from being hired at a regulated firm. Suppose employers associate the “minority” label with lower quality training and thus, minority workers find it harder to get a job they are qualified for. It is not obvious that this is the case today as theoretical models suggest. The idea behind Affirmative Action requirements is that, by promoting interactions across people of different groups, stereotypes against minority groups will decrease, and thus, in the long run, so will discrimination. ![]() However, can Affirmative Action impact workers even after that? How? Due to its nature, this regulation likely affects workers if and when they are hired or working for a regulated firm. My research aims at filling this gap by constructing a detailed dataset on workers’ job-histories together with thorough information about the firms that these jobs are in.Īffirmative Action regulation forbids employers to discriminate against individuals because of their race, color, religion, sex, or national origin in decisions regarding hiring, firing, compensation or other forms of employment. But have they been successful? There is little information about the long-term effects that Affirmative Action regulation has on workers’ careers. I t’s been 50 years since the passage of Affirmative Action laws that aim to reduce discrimination in employment. ![]()
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