Stroube, B (2022) Economic consequences and the motive to discriminate. Administrative Science Quarterly, 67 (1). pp. 207-236. ISSN 0001-8392
Abstract
Past research indicates that increasing the economic consequences of evaluations should theoretically discourage discrimination by making it more costly. In this paper I theorize that such consequences should also encourage discrimination in settings where evaluators may be motivated by performance expectations (e.g., stereotypes). I explore this theory using data from an online lending platform where a loan guarantee policy reduced the potential economic consequences of using borrower demographics during lending decisions. I find evidence that lenders evaluated female borrowers less favorably than male borrowers after the policy. This is consistent with the theory that the policy discouraged performance-motivated discrimination, while simultaneously encouraged consumption-motivated discrimination. Because I theorize about underlying motives for discrimination, the insights developed here should apply to a wide range of specific types of discrimination that vary according to these motives, including classic taste-based discrimination, homophily-driven discrimination, statistical discrimination, and status-based discrimination. Economic consequences may therefore represent an important dynamic link between different types of discrimination.
More Details
Item Type: | Article |
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Subject Areas: | Strategy and Entrepreneurship |
Additional Information: |
© 2021 the Author |
Funder Name: | Center for International Business at the University of Maryland, Fulbright Student Program |
Date Deposited: | 30 Mar 2021 10:29 |
Date of first compliant deposit: | 29 Mar 2021 |
Subjects: | Equal opportunities |
Last Modified: | 03 Dec 2024 02:43 |
URI: | https://lbsresearch.london.edu/id/eprint/1739 |