Underrepresentation, Quotas and Quality: A Dynamic Argument for Reform

Arbeitspapier

The trade-off between increased representation and perceived quality is central to the debate on how to address underrepresentation in high-profile professions. We address this trade-off using a dynamic model of career selection where juniors value both the identity and perceived quality of their mentors (seniors). A preference for homophily results in the persistence of underrepresentation, suggesting intervention is needed. However, if an abrupt quota causes a large decrease in the perceived quality of underrepresented seniors, then underrepresented juniors of high talent will select out of the profession, causing a permanent (real) quality difference. Encouragingly, we show that gradual reform—while decreasing perceived quality in the short term—enables a transition to equal representation and equal quality in the long term. We discuss the implications of our analysis for commonly-used measures to increase representation.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 10437

Classification and Topics

• Classification: Wirtschaft ; Externalities ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Education and Research Institutions: General ; Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination ; Economics of Gender; Non-labor Discrimination ; Human Capital; Skills; Occupational Choice; Labor Productivity
• Subject: affirmative action ; quotas ; mentorship ; identity ; gender ; adverse selection

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Arve, Malin ; Valasek, Justin
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2023

Further information

• Handle: http://hdl.handle.net/10419/279186
• Last update: 10.03.2025, 11:42 AM CET