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Comments on Harry Holzer: “The Economic Impacts of Affirmative Action in the U.S.” Bertil Holmlund

Comments on Harry Holzer: “The Economic Impacts of Affirmative Action in the U.S.” Bertil Holmlund Uppsala University Swedish Economic Council conference on Gender and Ethnic Discrimination, 30 October 2006. What do we know about the effects of affirmative action?.

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Comments on Harry Holzer: “The Economic Impacts of Affirmative Action in the U.S.” Bertil Holmlund

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  1. Comments on Harry Holzer: “The Economic Impacts of Affirmative Action in the U.S.” Bertil Holmlund Uppsala University Swedish Economic Council conference on Gender and Ethnic Discrimination, 30 October 2006

  2. What do we know about the effects of affirmative action? • Holzer: Affirmative action in the U.S. • improves labor market outcomes for minority groups • causes modest efficiency losses • has positive external effects

  3. What do we know about the effects of affirmative action? • Holzer: Affirmative action in the U.S. • improves labor market outcomes for minority groups • causes modest efficiency losses • has positive external effects Q: Is this assessment a consensus view?

  4. Will racial gaps in education erode? • Justice O’Connor (2003): ” 25 years from now, the use racial preferences will no longer be necessary” • Krueger, Rothstein and Turner (2005): • Projected economic progress will not yield nearly as much racial diversity as currently obtained with race-sensitive admissions

  5. Affirmative action in Sweden and the U.S.Differences and similarities

  6. Affirmative action in Swedish academia • The Tham chairs (Tham-professurerna) • 1995: chairs reserved for underrepresented sex • Uppsala University late 1990s • Trial period with affirmative action in recruitments of assistant professors

  7. Affirmative action in Swedish academia, cont. • Uppsala University 2003 • Preferential treatment of applicants to law school who had a foreign background • Örebro/Karlstad • Preferential admission of males in nursing schools • Umeå University • Preferential admission of applicants with foreign background or underrepresented sex

  8. Is affirmative action legal? • European Court of Justice regarding the Tham chairs (July 2000): • Preferential hiring of underrepresented sex is not allowed

  9. Regarding the Tham chairs, the court stated: EC preclude national legislation under which a candidate for a public post who belongs to the underrepresented sex and possesses sufficient qualifications for that post must be chosen in preference to a candidate of the opposite sex who would otherwise have been appointed …

  10. But the court also stated: it may be decided that seniority, age and the date of last promotion are to be taken into account only in so far as they are of importance for the suitability, qualifications and professional capability of candidates. Similarly, it may be prescribed that the family status or income of the partner is immaterial and that part-time work, leave and delays in completing training as a result of looking after children or dependants in need of care must not have a negative effect.

  11. But the court also stated: it may be decided that seniority, age and the date of last promotion are to be taken into account only in so far as they are of importance for the suitability, qualifications and professional capability of candidates. Similarly, it may be prescribed that the family status or income of the partner is immaterial and that part-time work, leave and delays in completing training as a result of looking after children or dependants in need of care must not have a negative effect.

  12. Court statement, cont. The clear aim of such criteria is to achieve substantive, rather than formal, equality by reducing de facto inequalities which may arise in society and … to prevent or compensate for disadvantages in the professional career of persons belonging to the under-represented sex.

  13. Related Swedish legal outcomes • Uppsala University late 1990s • Trial period with affirmative action in recruitments • Abolished • Uppsala University 2003 • Preferential treatment of applicants to law school who had a foreign background • Illegal according to Swedish courts (2005)

  14. Related Swedish legal outcomes, cont. • Örebro/Karlstad • Preferential admission of males in nursing schools • Illegal according to Swedish courts • Umeå University • Preferential admission of applicants with foreign background or underrepresented sex • ??

  15. Bottom line • Affirmative action Sweden is severely restricted by court decisions • But how is equality and diversity accomplished without affirmative action? • And is diversity a legitimate social goal?

  16. George W Bush commenting on Supreme Court decision, U of Michigan AA cases: ” I agree … that we ought to reject quotas. I think quotas are discriminatory by nature. … race-neutral admissions policies ought to be tried. If they don’t work, to achieve diversification, race ought to be a factor… I think that it’s very important for all institutions to strive for diversity, and I believe that there are ways to do so”

  17. George W Bush commenting on Supreme Court decision, U of Michigan AA cases: ” I agree … that we ought to reject quotas. I think quotas are discriminatory by nature. … race-neutral admissions policies ought to be tried. If they don’t work, to achieve diversification, race ought to be a factor… I think that it’s very important for all institutions to strive for diversity, and I believe that there are ways to do so”

  18. Issues regarding affirmative action • What is affirmative action? • AA1: Information etc so as to encourage applications from minorities

  19. Issues regarding affirmative action • What is affirmative action? • AA1: Information etc so as to encourage applications from minorities • AA2: Use race (gender) as tie-breaker

  20. Issues regarding affirmative action • What is affirmative action? • AA1: Information etc so as to encourage applications from minorities • AA2: Use race (gender) as tie-breaker • AA3: Admission and hiring quotas that favor disadvantaged groups

  21. Issues regarding affirmative action • Is AA discriminatory? • But current outcomes depend on past discrimination • Value in diversity • Meritocracy is not exclusively used in practice • What is the social objective function? • Implications of a Rawlsian objective function • Arbitrary classifications of minorities? • Nationality, language, family background, ”race” … • Class-based affirmative action?

  22. Some conclusions • If diversity is a goal, some affirmative action policies are needed (AA1, AA2, AA3) • Affirmative action to foster gender equality can to some extent be implemented by indirect means • e.g. better productivity measurement in academia • Affirmative action based on ethnic background is problematic • criteria for ethnic categories? • Color and gender blind alternatives? • e.g. class-based affirmative action

  23. All in all: Meritocracy is valuable but should not be the only thing that matters

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