We present results from laboratory experiments studying statistical discrimination and affirmative action. induce in simple labor-market interactions between firms workers. then introduce affirmative-action policies that vary the size duration of a subsidy receive for hiring discriminated-against These different have nearly same effect, practically eliminate discriminatory practices. However, o...

The prevalent affirmative action policy in school choice limits the number of admitted majority students to give minority students higher chances to attend their desired schools. There have been numerous efforts to reconcile affirmative action policies with celebrated matching mechanisms such as the deferred acceptance and top trading cycles algorithms. Nevertheless, it is theoretically shown t...

School choice programs aim to give students the option to choose their school. At the same time, underrepresented minority students should be favored to close the opportunity gap. A common way to achieve this is to have a majority quota at each school, and to require that no school be assigned more majority students than its majority quota. An alternative way is to reserve some seats at each sc...

We consider a model of endogenous human capital formation with competitively determined wages. Discrimination is sustainable in equilibrium in the presence of two distinguishable, but ex ante identical groups of workers. An affirmative action policy consisting of a quota may ‘fail’ in the sense that there still may be equilibria where groups are treated differently. However, the incentives to i...