Political Economy of Racism-page7

Political Economy of Racism-page7 - - Firms can rationally...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
- Firms can rationally choose to use group characteristics to predict applicants’ productive capacity: If the cost of information about individual applicants is high (relative to the benefits), it is rational to hire, promote, or pay based on group characteristics. o This is only economically rational. o Not right, or moral, or legal. Keynesian Liberals - Government role in job creation. Audit Studies - Liberal economists point to audit studies to argue that statistical discrimination is real, significant and persistent. - There are two main kinds of audit studies, in-person audits, and correspondence tests. In- person audits are conducted by recruiting auditors, participants of the study who will take the role of job applicants or housing customers. There auditors are then provided with carefully constructed resumes and histories coached in interviewing and paired with one another. During the research process auditors are debriefed and continuously coached on better matching their performances. Discrimination can then be directly experienced and
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/08/2011 for the course ECON 144 taught by Professor Lisasaunders during the Fall '11 term at UMass (Amherst).

Ask a homework question - tutors are online