Drug testing helps minority job applicants @jacindaardern

Statistical discrimination is a harsh mistress. If reliable measures of the quality of job applicants are unavailable for short-listing, such as credit checks, coarser, less reliable screening devices will be employed. That was the case when credit checks were prohibited in employment recruitment:

Looking at 74 million job listings between 2007 and 2013, Clifford and Shoag found that employers started to become pickier, especially in cities where there were a lot of workers with low credit scores. If a credit-check ban went into effect, job postings were more likely to ask for a bachelor’s degree, and to require additional years of experience.

There are other ways that employers could have also become more discerning, Shoag says. They might have started to rely on referrals or recommendations to make sure that applicants were high-quality. In the absence of credit information to establish trustworthiness, they may even have fallen back on racial stereotypes to screen candidates. The researchers couldn’t measure these tactics, but they’re possibilities.

Drug testing allows employers to dispel less accurate stereotypes about drug use among different ethnic and social groups. They increased hiring of minorities because a reliable measure became available of their drug use:

…after a pro-testing law is passed in a state, African-American employment increases in sectors that have high testing rates (mining, manufacturing, transportation, utilities, and government).

These increases are substantial: African-American employment in these industries increases by 7-30%. Because these industries tend to pay wage premia and to have larger firms offering better benefits, African-American wages and benefits coverage also increase. Real wages increase by 1.4-13% relative to whites. The largest shifts in employment and wages occur for low skilled African-American men.

I also find suggestive evidence that employers substitute white women for African-Americans in the absence of testing. Gains in hiring African-Americans in these sectors may have come at the expense of women, particularly in states with large African-American populations.

Employers test for drug use both for health and safety reasons and as a way of screening out less reliable employees. People who break the rules are not reliable employees and that includes taking drugs. In low skill jobs, what employers seek is a recruit who is friendly and reliable.

image

Testing of the skills of workers also showed similar results. What happened is that the ratio of black to white hirings do not change. The administration of these skills tests allowed the more productive of both white and black job applicants to be identified and hired.

Employers already had an accurate stereotype of the average skills of different ethnic groups. Administration of tests allow them to identify which members of each group were the most productive.

It is a standard result that statistical discrimination improves the chances of below-average applicants subject to the stereotype but harms those of above average quality. For that reason, applicants look for what methods of counter-signalling to show that they are indeed a quality applicant – make themselves stand out from the crowd.

Employers profit from developing screening devices that go beyond stereotypes to identify above-average applicants. They want screening devices that find those who do not otherwise stand out from the crowd because of difficulties in transferring credible information about their quality. This is a special difficulty with low-skilled vacancies because hiring is made based much more than on character than experience.

@jacindaardern wrong to say Australia is last place to follow in race relations

From 1965 onwards, 1/3rd of terrestrial Australia – 2.5 million sq kms of land – was returned to indigenous owners, with half of that since the Native Title decision in 1993. Tasmania pioneered aboriginal land rights with the Cape Barron Island Act 1912.

Source: Jon Altman, The political ecology and political economy of the Indigenous land titling ‘revolution’ in Australia, March 2014 Māori Law Review.

New Zealand extinguished native title twice in its history with the 2nd of these takings of Māori land by the last Labour government with the foreshore and seabed legislation. In her op-ed today, has Jacinda Ardern forgotten why the Māori party came into being?

Unlike New Zealand, Australia welcomed migrants from a wide range of ethnicities after the Second World War. It abolished the White Australia policy in the 1960s along with any discrimination in its Constitution against aboriginals.

Australia takes 8 times as many refugees as New Zealand on a per capita basis.

This redress of indigenous grievances was done out of the generosity of the Australian heart. Aboriginals are a tiny minority in Australia with little independent political pull.

Screen actor demographics

Loury and McWhorter tackle the racial mismatch hypothesis and Affirmative Action

https://twitter.com/SteveStuWill/status/679091518267879425

Roland Fryer on Education, Inequality, & Incentives

The gap between black and white students appears as early as kindergarten and grows with time

Roland Fryer On Why Good Schools Matter @greencatherine @dbseymour @ThomasHaig @PPTAWeb

Roland Fryer believes “high-quality education is the new civil rights battleground”. He is an extraordinary man who was carrying a gun and selling drugs at 14 and an assistant professor of economics at Harvard at the age of 27. He is fearless as a researcher.

Source: Roland Fryer On Why Good Schools Matter – Forbes

Presidential election turnout by race

via The Voting Rights Act turns 50 today. Here are three trends in minority voting you should know about. – The Washington Post.

Did Mass Incarceration Destroy the Black Family?

Why no ethnic wage gap for New Zealanders aged 15 to 24?

image

via New Zealand Income Survey 2014 via Human Rights Commission: Tracking Equality at Work

Prison incarceration rates by race and education

Male African American high school dropouts facing a nearly 70% cumulative risk of imprisonment by their early 30s. However, the increase in incarceration rates among high school graduates appeared to be much the same for both blacks and whites.

This hints that racism is not as good explanatory of high rates of African-American male incarceration. Police do not know whether the people they arrest have high school diplomas or not but most of the people they arrest are high school dropouts. This suggests that the opportunity cost and rewards of crime over lawful occupational pursuits is a driver of the supply of crime.

Where people are the most and least racially tolerant

via 40 maps that explain the world – The Washington Post.

The market erodes discrimination

Who gained the most from US 1996 Federal welfare reforms?

image

via Rethinking the War on Poverty: Part 1 in a Series | The GailFosler Group.

Measures of racism across the world

https://www.facebook.com/UnbiasedAmerica/photos/a.130184327167571.1073741828.123061011213236/366914820161186/?type=1

 

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