The Paradox of Statistical Discrimination

Abstract:     
At present, men and women have different distributions of certain aptitudes and personality traits. A growing body of research suggests that some these differences have some biological basis. These distribution differences do not always conform neatly to traditional stereotypes about male and female roles. Clearly, cultural factors also contribute, and the precise contributions of environment and biology cannot yet be gauged.

Nonetheless, the evidence suggests that even without cultural pressures, some occupationally relevant traits would be distributed differently between men and women. Support for some genetic basis comes from a wide array of disciplines, including cognitive psychology, physiology, and anthropology. A biological basis for difference, however, produces a paradox. As is often noted, it suggests that some occupational segregation is not caused by discrimination: men and women would not be equally distributed among occupations even in a perfectly fair society. At the same time, a statistical aptitude or temperament difference will almost inevitably cause discrimination in professions that make use of that aptitude or temperament. The larger the difference, the more likely discrimination is. This implication is supported by empirical evidence about the continued existence of discrimination.Like evidence about difference, evidence for discrimination comes from disparate sources, including labor market data and experimental laboratory studies in both economics and psychology.

Ability distribution differences create tremendous challenges for anti-discrimination policy. Liability rules based on current labor market representation are of minimal use, since the labor market reflects existing discrimination. Though perhaps useful in the short term, long-term numerical targets are problematic: target goals are extremely difficult to set, and would need to become a permanent institution. Moreover, numerical targets may create unintended problems for women. Men have historically dominated even fields in which women have an advantage. A target goal of equal representation would prevent women from attaining majority status in these fields. Closer scrutiny of employer practices holds promise as an alternative to numerically based theories.

Keywords: Occupational Segregation, Discrimination, Sex Differences

Working Paper Series