Affirmative Action as Earnings Redistribution: The Targeting of Compliance Reviews

Abstract

Affirmative action may be broadly conceived of as pursuing either the goal of reducing discrimination or that of redistributing jobs and earnings. I attempt to infer the ends of affirmative action policy by analyzing the historical record of enforcement. Optimal enforcement strategies are developed for both the anti-discrimination and the earnings redistribution models, and then compared with new data on the actual targeting of affirmative action compliance reviews during the late 1970s. I find that establishments with very low proportions of minority or female workers are not significantly more likely to be reviewed, but that white-collar intensive establishments are more likely to be reviewed. This indicates the shortcomings of the anti-discrimination model inexplaining the OFCCP's behavior, and suggests the potential usefulness of the earnings redistribution model.