Abstract
The paper studies discriminatory hiring by an organization whose members’ cooptation decisions are driven by two motives: quality and homophily. Small variations in the initial quality or diversity of the organization may lead to virtuous or vicious spirals. In order to avoid depriving itself of its talent pool, an organization voluntarily engages in affirmative action if and only if its quality-diversity mix is currently unattractive yet curable.
Reference
Paul-Henri Moisson, and Jean Tirole, Organizational Spirals and Spontaneous Affirmative Action, May 2020.
See also
Published in
May 2020