Pallais and her collaborators study the dynamics that underlie discrimination and show that there is somewhat of a self-fulfilling prophecy: Certain managers have negative expectations about how minority employees will perform and in response those workers have worse performance when randomly paired with those managers.
While many authors have noted the potential importance of discrimination, it has been difficult to uncover the mechanisms underlying discriminatory practices, which is a key step in figuring out how to reduce them.”Main finding: Living standards may be growing faster than GDP growth.
Nominating economist: David Autor, Massachusetts Institute of Technology Specialization: Globalization and labor markets Why?
No explanation given Main finding: Managers are biased negatively against minority workers, and this, in turn, makes the minority workers perform worse.
We asked these economists which study they thought was the most important or intriguing of 2017, along with their thoughts on the research.
The chosen studies capture the concerns of 2017, with subjects ranging from opioids to gender discrimination to globalization.Blockbusters Why are so few sports massively popular, while the majority languish with little attention? Dumb luck How much of a role does luck play in deciding who wins and who loses?The winner’s curse Where superstar athletes are sought after, do team managers tend to overpay for the big names? A sporting chance How has the development of statistical econometric modeling been influenced by amateur fanatics?“Alice Wu wrote a very provocative paper about misogyny on an anonymous website for economists frequented by tens of thousands of people.It led to policy intervention by the American Economics Association.”Main finding: Even with generous subsidies, low-income people are still unlikely to buy health insurance.Nominating economist: Angus Deaton, Princeton University, winner of the 2015 Nobel prize in economics Specialization: Economic development and poverty measurement Why?“Bob Allen’s breakthrough paper shows a way ahead in a long-standing intractable problem of how to construct poverty lines that account for needs as well as prices.Here are their picks: Main finding: When women are discussed on the main economics discussion forum, the conversation moves from the professional to the personal.Nominating economist: Susan Athey, Stanford University Specialization: The economics of technology Why?The price of fame Are more famous sportsmen likely to benefit, or suffer, in their performance as they gain more renown? Should countries and cities fight to host the Olympics or the World Cup? The economist’s prescription for hooliganism What solutions would an economist suggest to stop the brawls, bust-ups, and battles that beset so many games?Be the worst you can be When do contestants face incentives to lose their matches, rather than win them?