Theories of Statistical Discrimination and Affirmative Action: A Survey

by Hanming Fang and Andrea Moro.
in Jess Benhabib, Matthew Jackson and Alberto Bisin editors: Handbook of Social Economics, Vol. 1A, Chapter 5, The Netherlands: North Holland, 2011, pp. 133-200. : PDF
This chapter surveys the theoretical literature on statistical discrimination and affi rmative action. This literature suggests di erent explanations for the existence and persistence of group inequality. This survey highlights such di erences and describes in these contexts the e ffects of color-sighted and color-blind armative action policies, and the efficiency implications of discriminatory outcomes


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