Negative side effects of affirmative action: How quotas lead to distortions in performance evaluation

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  • University of Cologne
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Original languageEnglish
Article number103500
JournalEuropean Economic Review
Volume130
Early online date16 Jun 2020
Publication statusPublished - Nov 2020

Abstract

We study the impact of affirmative action on peer-review behavior. We conduct a real-effort tournament experiment, in which prizes are awarded according to peer-review evaluation. Between treatments, we vary whether or not a quota is implemented and whether or not affirmed individuals face ex-ante procedural disadvantages. We find that quotas lead to distorted peer-reviews, where affirmed individuals receive significantly less favorable reviews than non-affirmed peers with similar performance. Distortions in peer-reviews are robust to changes in ex-ante procedural fairness and seem to be driven by enhanced competition among affirmed individuals.

Keywords

    Affirmative action, Creative work, Peer-review, Procedural fairness, Quota, Real effort

ASJC Scopus subject areas

Cite this

Negative side effects of affirmative action: How quotas lead to distortions in performance evaluation. / Petters, Lea M.; Schröder, Marina.
In: European Economic Review, Vol. 130, 103500, 11.2020.

Research output: Contribution to journalArticleResearchpeer review

Petters LM, Schröder M. Negative side effects of affirmative action: How quotas lead to distortions in performance evaluation. European Economic Review. 2020 Nov;130:103500. Epub 2020 Jun 16. doi: 10.1016/j.euroecorev.2020.103500
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abstract = "We study the impact of affirmative action on peer-review behavior. We conduct a real-effort tournament experiment, in which prizes are awarded according to peer-review evaluation. Between treatments, we vary whether or not a quota is implemented and whether or not affirmed individuals face ex-ante procedural disadvantages. We find that quotas lead to distorted peer-reviews, where affirmed individuals receive significantly less favorable reviews than non-affirmed peers with similar performance. Distortions in peer-reviews are robust to changes in ex-ante procedural fairness and seem to be driven by enhanced competition among affirmed individuals.",
keywords = "Affirmative action, Creative work, Peer-review, Procedural fairness, Quota, Real effort",
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note = "Funding Information: We thank the editor and two anonymous referees for helpful comments and suggestions. We thank the Center for Social and Economic Behavior (C-SEB) through the C-SEB Gender Research Grant and the German Research Foundation (DFG) through priority program SPP 1764 [SL 46/2–1] and the research unit “Design and Behavior – Economic Engineering of Firms and Markets” [FOR 1371] for financial support. We thank the audience at the ESA World Meeting 2016 in Jerusalem, ESA European Meeting in Bergen, IMEBESS 2017 in Barcelona, the Research Seminar in Applied Microeconomics in Cologne, the C-SEB Workshop at the University of Cologne, and the Gender Economics Workshop at the DIW Berlin, and Stefano Balietti, Uri Gneezy, Bernd Irlenbusch, Andreas Leibbrandt, Ernesto Reuben, Dirk Sliwka, and Susanne Steffes for helpful comments and suggestions. We thank Tobias Danzeisen and Ruth Nee{\ss}en for excellent support in programming and conducting the experiment. ",
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