A Voucher Supplement To Existing Anti-Discrimination Programs In The Job Market

Abstract

This paper draws on literatures on vouchers and discrimination, and derives an optimal voucher scheme as a supplement to standard anti-discrimination policies, including affirmative action. Surveying current policy methods, it compares efficiency and distributional effects of vouchers to those of the standard enforcement policies. The motivation for vouchers is based on efficiency, equity, and on observed divergence of racial unemployment rates combined with convergence of wage rates.