480. How Much Does Discrimination Hurt the Economy? (Replay)

Evidence from Nazi Germany and 1940’s America (and pretty much everywhere else) shows that discrimination is incredibly costly — to the victims, of course, but also the perpetrators. One modern solution is to invoke a diversity mandate. But new research shows that’s not necessarily the answer.

RESOURCES:

• " Discrimination, Managers, and Firm Performance: Evidence from 'Aryanizations' in Nazi Germany • ," by Kilian Huber, Volker Lindenthal, and Fabian Waldinger ( Journal of Political Economy, • 2021). • " Diversity and Performance in Entrepreneurial Teams • ," by Sophie Calder-Wang, Paul A. Gompers, and Kevin Huang ( SSRN, • 2021). • " Systemic Discrimination Among Large U.S. Employers • ," by Patrick M. Kline, Evan K. Rose, and Christopher R. Walters ( NBER Working Papers, • 2021). City of Champions: A History of Triumph and Defeat in Detroit, • by Silke-Maria Weineck and Stefan Szymanski (2020). • " The Allocation of Talent and U.S. Economic Growth • ," by Chang-Tai Hsieh, Erik Hurst, Charles I. Jones, and Peter J. Klenow ( Econometrica, • 2019). Genius & Anxiety: How Jews Changed the World, 1847-1947, • by Norman Lebrecht (2019). • " And the Children Shall Lead: Gender Diversity and Performance in Venture Capital • ," by Paul A. Gompers and Sophie Q. Wang ( NBER Working Papers, • 2017). • " The Political Economy of Hatred • ," by Edward Glaeser ( The Quarterly Journal of Economics, • 2005). • " Statistical Theories of Discrimination in Labor Markets • ," by Dennis J. Aigner and Glen G. Cain ( Industrial and Labor Relations Review, • 1977). The Economics of Discrimination • , by Gary S. Becker (1957).

EXTRAS:

• " A New Nobel Laureate Explains the Gender Pay Gap (Replay) • ," by Freakonomics Radio • (2023). • " Edward Glaeser Explains Why Some Cities Thrive While Others Fade Away • ," by People I (Mostly) Admire • (2021). • " What Are the Secrets of the German Economy — and Should We Steal Them? • " by Freakonomics Radio • (2017).

SOURCES:

Kilian Huber • , professor of economics at the University of Chicago. Silke-Maria Weineck • , professor of German studies and comparative literature at the University of Michigan. Sophie Calder-Wang • , professor of economics at the University of Pennsylvania.