Diverse Policy Committees Can Reach Underrepresented Groups

Increasing the diversity of policy committees has taken center stage worldwide, but whether and why diverse are more effective is still unclear. In a randomized control trial that varies salience female minority representation on Federal Reserve’s monetary committee, FOMC, we test affects how Fed information influences consumers’ subjective beliefs. Women Black respondents form unemployment expectations in line with FOMC forecasts trust after this intervention. also likely to acquire Fed-related when associated official. White men, who overrepresented do not react negatively. Heterogeneous taste for can explain these patterns better than homophily. Our results suggest able reach underrepresented groups without inducing negative reactions by others, thereby enhancing effectiveness communication public institution. Institutional subscribers NBER working paper series, residents developing countries may download additional charge at www.nber.org.