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Does affirmative action reduce gender discrimination and enhance efficiency? New experimental evidence

Author

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  • Beaurain, Guillaume
  • Masclet, David
Abstract
We investigate experimentally the impact of quota policies on gender discrimination in hiring decisions by testing whether affirmative action increases female employment. We also ask whether firm performance is affected by such policies. Our experiment consists of three treatments. In the baseline (no quota) treatment, groups of two employers and six potential job candidates are formed. Employers have to hire two workers based on information on candidate characteristics including gender and years and subject of study. The second, low penalty, treatment is identical to the baseline except there is a quota such that at least half of the employees hired must be women. If this quota is not respected, the firm has to pay a penalty. The last, high penalty, treatment is the same as the low penalty treatment except that the penalty is significantly higher. We find that women are ranked unfavorably in the absence of a quota, and the introduction of a quota significantly reduces gender discrimination. Firm performance is not affected by the introduction of quotas.

Suggested Citation

  • Beaurain, Guillaume & Masclet, David, 2016. "Does affirmative action reduce gender discrimination and enhance efficiency? New experimental evidence," European Economic Review, Elsevier, vol. 90(C), pages 350-362.
    • Handle: RePEc:eee:eecrev:v:90:y:2016:i:c:p:350-362
    DOI: 10.1016/j.euroecorev.2016.04.009
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    6. Peterlé, Emmanuel & Rau, Holger A., 2017. "Gender differences in competitive positions: Experimental evidence on job promotion," University of Göttingen Working Papers in Economics 303, University of Goettingen, Department of Economics.
    7. José J. Domínguez, 2021. "The Effectiveness of Committee Quotas; The Role of Group Dynamics," ThE Papers 21/12, Department of Economic Theory and Economic History of the University of Granada..
    8. Sabrina Herzog & Hannah Schildberg-Hörisch & Chi Trieu & Jana Willrodt, 2023. "Who Is in Favor of Affirmative Action? Representative Evidence from an Experiment and a Survey," CESifo Working Paper Series 10822, CESifo.
    9. Hannah Schildberg-Hörisch & Marco A Schwarz & Chi Trieu & Jana Willrodt, 2023. "Perceived Fairness and Consequences of Affirmative Action Policies," The Economic Journal, Royal Economic Society, vol. 133(656), pages 3099-3135.
    10. Eszter Czibor & Silvia Dominguez Martinez, 2019. "Never too Late: Gender Quotas in the Final Round of a Multistage Tournament," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 35(2), pages 319-363.
    11. Petters, Lea M. & Schröder, Marina, 2020. "Negative side effects of affirmative action: How quotas lead to distortions in performance evaluation," European Economic Review, Elsevier, vol. 130(C).
    12. Oriana Bandiera & Nidhi Parekh & Barbara Petrongolo & Michelle Rao, 2022. "Men are from Mars, and Women Too: A Bayesian Meta‐analysis of Overconfidence Experiments," Economica, London School of Economics and Political Science, vol. 89(S1), pages 38-70, June.
    13. Schildberg-Hörisch, Hannah & Trieu, Chi & Willrodt, Jana, 2020. "Perceived fairness and consequences of affirmative action policies," DICE Discussion Papers 338, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    14. Julien Picault, 2023. "A strategic approach to managerial compliance with equal pay policies," SN Business & Economics, Springer, vol. 3(8), pages 1-21, August.
    15. Georg D. Blind & Stefania Lottanti von Mandach, 2021. "Of pride and prejudice: agent learning under sticky and persistent stereotype," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 16(2), pages 381-410, April.
    16. Trieu, Chi, 2023. "Who's who: How uncertainty about the favored group effects outcomes of affirmative action," DICE Discussion Papers 405, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    17. Herzog, Sabrina & Schildberg-Hörisch, Hannah & Trieu, Chi & Willrodt, Jana, 2023. "Who is in favor of affirmative action? Representative evidence from an experiment and a survey," DICE Discussion Papers 409, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    18. Subhasish M. Chowdhury & Patricia Esteve‐González & Anwesha Mukherjee, 2023. "Heterogeneity, leveling the playing field, and affirmative action in contests," Southern Economic Journal, John Wiley & Sons, vol. 89(3), pages 924-974, January.
    19. Francesco Fallucchi & Simone Quercia, 2016. "Affirmative action and retaliation in experimental contests," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 16-03, School of Economics, University of East Anglia, Norwich, UK..
    20. Domínguez, José J., 2023. "Diversified committees in hiring processes: Lab evidence on group dynamics," Journal of Economic Psychology, Elsevier, vol. 97(C).
    21. José J. Domínguez & Natalia Montinari, 2021. "Gender Quotas and Task Assignment in Organizations," ThE Papers 21/13, Department of Economic Theory and Economic History of the University of Granada..
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    More about this item

    Keywords

    C91; J16; J24; J71; Real effort experiment; Performance; Affirmative-action programs; Gender gap;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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