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Mentoring and the Dynamics of Affirmative Action

Michèle Müller-Itten () and Aniko Öry
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Michèle Müller-Itten: Department of Economics, University of Notre Dame, https://economics.nd.edu/faculty/michele-muller-itten/

No 2112, Cowles Foundation Discussion Papers from Cowles Foundation for Research in Economics, Yale University

Abstract: We study the evolution of labor force composition when mentoring is more effective within members of the same socio-demographic type. Typically, multiple steady states exist. Some completely exclude juniors of one type. Even a mixed steady state tends to over-represent the type that is dominant in the population. In contrast, the efficient labor force balances talent recruitment against mentoring frictions. It may even underrepresent the dominant type and typically calls for persistent government intervention. This contrasts with the public discourse around temporary affirmative action. We consider specific policy instruments and show that hiring quotas can induce equilibrium employment insecurity.

Keywords: Affirmative action; Continuous time overlapping generations; Human capital; Labor participation; Employment insecurity; Mentoring; Talent (search for similar items in EconPapers)
JEL-codes: D62 E24 I2 J15 J16 J24 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac
Date: 2017-11
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