Title

The Deceptively Simple Economics of Workplace Diversity

Document Type

Article

Publication Date

Summer 2000

Abstract

Legal, scholarly, and public discussion of work force diversity has proceeded largely without benefit of microeconomic theory. Existing analysis relies on incomplete information to explain why firms might have "unrepresentative" work forces. I build a model in which work force composition matters even given full information. My analysis both explains current labor-market trends and raises questions about the use by courts and government agencies of statistical evidence to test for employment discrimination.