U. S. white population grew 7%
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U.S. white population grew 5.7%
Herfindahl index, from industrial organization, measures concentration of an industry as
Same principle can measure group diversity. Herfindahl index means that diversity goes up when one minority group becomes larger at expense of majority group, or when one group splits into two.
Example 2: US
Issues of definition: Diversity by what criteria?
Prejudice: Employers dislike members of other groups, and labor-market groups reflect this.
Real non-Hispanic white male earnings have increased 1.01%
All workers: 37,057 (M), 27,194 (F)
Skill behaves like physical capital. It can be augmented through investment, and it tends to depreciate over time.
Discrimination is modeled as disutility from working with or supervising people from other groups. Like most dislikes, the loss from discriminatory tastes can be offset when hiring members of these groups if he is sufficiently compensated – by paying lower wages, for example.
This requires that, in comparing groups, we take account of differences in human-capital characteristics known to matter in the market. We can only talk of discrimination after adjusting for these differences. Some subset of the remaining gap may be discrimination.
Statistical discrimination refers to employer use of traits such as race and sex in decision-making because they are somewhat correlated with productivity, and employer lacks more useful information specific to the individual. These traits are, in other words, stereotypes with some value.
Very large differences among groups with respect to obvious human-capital sources.
After standardizing for players’ education, proportion of questions previously answered correctly (both of which affect votes against a player in predicted direction), no evidence of taste-based discrimination against blacks, Asians or women. Some evidence of statistical discrimination against Hispanics, taste-based discrimination against elderly, who are voted off early despite performing poorly on average at the end.
“I've no doubt that there are a few people out there who have been unjustly hurt by this; but we cannot regulate every bad business decision that hurts a few people. Each regulation may sound fine on its own, but collectively, they massively raise the compliance cost of starting a business and hiring workers, two things we want to support. So we need to set some sort of bar to ensure that we're only regulating things that have substantial, widespread negative impact.” – Megan McArdle, “Fico Frenzy.”
In 1964, general skills tests were commonly given by employers – there were over 2000 kinds in that year alone, and 84% of employers used them.
While about 2/3 of employers still use tests, they are very specifically worded to the work environment, and general IQ and mechanical-aptitude tests are seldom used for fear of litigation.
College income premium;
In every country in the New World to which they have immigrated, Japanese have done better than almost any other ethnic group.
In Malaysia, Chinese tend to work harder and save more than Malays.
It has expanded substantially, in conjunction with a decline in laws discriminating against minorities.
Malaysia: Chinese do better economically than majority Malays. Firms doing business with government often required to have Malay partner.
Hysteresis – the tendency of outsiders to forever be excluded from valuable trading networks without some effort to include them.
Minorities are underrepresented as partners at big law firms, despite the fact that law firms work very hard to hire them as associates.
Private firms may not “discriminate,” by civil-rights laws of the 1960s.
“Hence, the purpose of helping certain groups whom the faculty of the Davis Medical School perceived as victims of ‘societal discrimination’ does not justify a classification that imposes disadvantages upon persons like respondent, who bear no responsibility for whatever harm the beneficiaries of the special admissions program are thought to have suffered. To hold otherwise would be to convert a remedy heretofore reserved for violations of legal rights into a privilege that all institutions throughout the Nation could grant at their pleasure to whatever groups are perceived as victims of societal discrimination. That is a step we have never approved.” (Bakke, at 2758).
“As part of its goal of ‘assembling a class that is both exceptionally academically qualified and broadly diverse," the Law School seeks to "enroll a 'critical mass' of minority students. The Law School's interest is not simply ‘to assure within its student body some specified percentage of a particular group merely because of its race or ethnic origin.’ That would amount to outright racial balancing, which is patently unconstitutional. Rather, the Law School's concept of critical mass is defined by reference to the educational benefits that diversity is designed to produce.
Freer markets – where new businesses are easier to start, labor markets more flexible, etc. – are associated with less discrimination.
There was no official recognition of unions; absolute freedom of contract ruled.
Civil-rights legislation and the 14th Amendment it inspired were meant largely to ensure property and contract rights for black workers. The “Black Codes” enacted immediately after the war had restricted such rights.
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