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Author(s)

Dean Foster

Rakesh Vohra

This article presents a model involving employers and two classes of workers, alike except for labels. Employers choose whom to hire and workers choose whether to invest in training. At one equilibrium, employers discriminate, which, the authors show, is Pareto inferior to another equilibrium where no discrimination occurs. On the basis of this observation, an argument for affirmative action is advanced.
Date Published: 1992
Citations: Foster, Dean, Rakesh Vohra. 1992. An Economic Argument for Affirmative Action. Research and Society. (2)176-188.