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Affirmative Action in Hierarchies

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  • Suzanne Scotchmer

Abstract

If promotion in a hierarchy is based on a random signal of ability, rates of promotion will be affected by risk-taking. Further, the numbers and abilities of risk-takers and non-risk-takers will be different at each stage of the hierarchy, and the ratio will be changing. I show that, under mild conditions, more risk-takers than non-risk-takers will survive at early stages, but they will have lower ability. At later stages, this will be reversed: Fewer risk-takers than non-risk-takers survive, but they will have higher ability. I give several interpretations for how these theorems relate to affirmative action, in light of considerable evidence that males are more risk-taking than females.

Suggested Citation

  • Suzanne Scotchmer, 2005. "Affirmative Action in Hierarchies," NBER Working Papers 11213, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:11213
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    1. Dekel, Eddie & Scotchmer, Suzanne, 1999. "On the Evolution of Attitudes towards Risk in Winner-Take-All Games," Journal of Economic Theory, Elsevier, vol. 87(1), pages 125-143, July.
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    Cited by:

    1. Dino Falaschetti, 2012. "A Sex Difference in Risk Taking and Promotions in Hierarchies: Evidence from Females in Legislatures," Journal of Law and Economics, University of Chicago Press, vol. 55(3), pages 477-502.

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    JEL classification:

    • J7 - Labor and Demographic Economics - - Labor Discrimination

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