Source: Pager, Devah. 2016. “Are Firms that Discriminate More Likely to Go Out of Business?” Sociological Science (September):849-859. PDF
Prominent New Zealand Labour Party stalwart Sunny Kaushal has resigned from the Party amidst allegations of hostilities and bullying from Party Membership and Party Hierarchy.
With the growing use of arguments about unconscious bias, it is near impossible to rebut an accusation of racism.
Certainly, once the accusation is spit at you, the onus is on you to prove to a stranger who never met you before beyond reasonable doubt that you are not a racist. One misfortunate glance, a raised eyebrow, a jumbled sentence is enough to undo a life of principle
Unconscious bias is the main driver of the gender wage gap if my betters are to be believed. Why not racism? What is the view of the New Zealand Labour Party on unconscious bias in proving racial discrimination and pay inequity?
The Labour Party wants to reverse the onus of proof in sexual assault trials. Certainly these standards should filter down into civil proceedings and pub conversations.
The Labour Party must be a cauldron of sexism if the only way it can get gender balance in caucus is quotas. Why is racism not any less insidious within Labour decision-making than sexism?
Until a few months ago, there is universal agreement particularly among women that men should not be allowed into female bathrooms and change rooms. There are relatively few transgender people according to New York at times estimates, and few had heard of them until recently to discriminate against them in long-standing bathroom arrangements.
This is not a case of sex discrimination. It is some people being rather unusual and not fitting into arrangements that suit everybody else. These arrangements regarding bathrooms, change rooms and privacy were crafted with absolutely no malice or hostility towards those who find them inconvenient such as transgender people. You just cannot please everybody.
There are certainly hostility and indeed violence against transgender people. That violence is by a minority full of hate looking for someone to hate on any criteria. There are some people are not nice and who take pleasure in being nasty and at times violent towards other people. That is separate from managing the long-standing human preference for bodily privacy.
Opposing discrimination is about telling people to stop being an arsehole. They have preferences about who they deal with that are appalling and mean. The segregation of bathrooms and changing rooms by sex is about a fundamental human desire for bodily privacy.
The unions representing public servants and the Green Party are very excited about the gender wage gap this week. So much so that the public service union presented the Treasury with an invoice for that wage gap in the public sector of 14.1%.
Oddly enough, despite their concerns with the gender wage gap in the public service, the public service unions are stridently against both privatisation and contracting out.
It is almost trite to note is that one of the earliest analytical results in the labour economics of discrimination was that profit maximising employers are much less likely to discriminate than firms that are not subject to a profit and loss constraint and the discipline of bankruptcy.
A prejudiced employer pays a wage above the competitive wage to attract the particular recruits he or she is prejudiced in favour of and does not hire enough workers because he must pay higher wages. This results in lower output and profits than without discrimination.
Bureaucrats can indulge their prejudices without putting the survival of their business in jeopardy. Entrepreneurs who don’t hire on merit risk running out of going out of business because their costs are hire and their businesses less productive.
…market mechanisms impose inescapable penalties on profits whenever for-profit enterprises discriminate against individuals on any basis other than productivity. Though bigoted managers may hold sway for a time, in the long run the profit penalty makes profit-seeking enterprises tenacious champions of fair treatment.
Early examples of the greater propensity for discrimination in the public sector and non-profit organisations are by Armen Alchian and Ruben Kessel in Competition, Monopoly, and the Pursuit of Money in 1962 and Gary Becker’s pioneering The Economics of Discrimination in 1957.