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ERIC Number: ED147394
Record Type: RIE
Publication Date: 1976-May
Pages: 64
Abstractor: N/A
Reference Count: 0
Employment Quotas for Minorities.
Welch, Finis
This report, part of Rand's Labor and Population Studies Program, delves into sources of black/white income differentials. This report has as its purpose, the use of employment quotas as an analytical device for devising a priori notions of what the effects of government attempts to reduce employment discrimination might be. Following a formal solution to both a one-sector and a two-sector model of quotas, wherein the two-sector case quotas are imposed on only one sector, a number of simulations are presented. The simulations are an arithmetical exercise conducted to give order of magnitude estimates of the social cost of quota-induced income redistribution. The main conclusion is that without skill bumping quotas are expensive means of redistributing income. With skill bumping, quotas have the potential of redistributing income at costs that appear trivial, but there is a problem. Skill bumping presumes that workers are upgraded into better paying jobs than they would otherwise hold. Protagonists of affirmative action have argued that quotas for skilled minority workers create incentives for increasing minority skills and therefore provide longer run incentives for eliminating the skill component of majority/minority income differentials. That these effects are in fact ambiguous is established by examination of a very simple one-sector model in which quotas only redistribute income without social costs. In sum, the analysis presented suggests that the antagonists' fears of quota programs with high social costs alongside widespread sacrifices of employment standards may be ill-founded. On the contrary, it is the flexibility of standards that can dampen costs. As in many other cases, effects of quotas seem to be largely an empirical question. (Author/AM)
Publication Type: Reports - Research
Education Level: N/A
Audience: N/A
Language: N/A
Sponsor: Department of Health, Education, and Welfare, Washington, DC.; Department of Labor, Washington, DC.
Authoring Institution: Rand Corp., Santa Monica, CA.