Attentional role of quota implementation
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11640%2F21%3A00546178" target="_blank" >RIV/00216208:11640/21:00546178 - isvavai.cz</a>
Alternative codes found
RIV/67985998:_____/21:00546177
Result on the web
<a href="https://doi.org/10.1016/j.jet.2021.105356" target="_blank" >https://doi.org/10.1016/j.jet.2021.105356</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1016/j.jet.2021.105356" target="_blank" >10.1016/j.jet.2021.105356</a>
Alternative languages
Result language
angličtina
Original language name
Attentional role of quota implementation
Original language description
In this paper, we introduce a new role of quotas, e.g. labor market quotas: the attentional role. We study the effect of quota implementation on the attention allocation strategy of a rationally inattentive (RI) manager. We find that quotas induce attention: a RI manager who is forced to fulfill a quota, unlike an unrestricted RI manager, never rejects minority candidates without acquiring information about them. We also demonstrate that in our model quotas are behaviorally equivalent to subsidies. In addition, we analyze different goals that the social planner can achieve by implementing quotas. First, quotas can eliminate statistical discrimination, i.e. make the chances of being hired independent from the group identity. Second, when the hiring manager has inaccurate beliefs about the distribution of candidates' productivities, the social planner can make the manager behave as if she has correct beliefs. Finally, we show how our results can be used to set a quota level that increases the expected value of the chosen candidates.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50201 - Economic Theory
Result continuities
Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2021
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Journal of Economic Theory
ISSN
0022-0531
e-ISSN
1095-7235
Volume of the periodical
198
Issue of the periodical within the volume
December
Country of publishing house
US - UNITED STATES
Number of pages
25
Pages from-to
105356
UT code for WoS article
000704513600004
EID of the result in the Scopus database
2-s2.0-85115977922