A Short-term Intervention for Long-term Fairness in the Labor Market

Explore a dynamic reputational model of the labor market that addresses persistent racial inequality in the U.S. workforce. Examine how current group disparities can remain unchanged even with "individual fairness" in hiring decisions. Discover a dual labor market approach featuring a Temporary Labor Market (TLM) with statistical parity constraints and a Permanent Labor Market (PLM) for top performers. Learn how this model can potentially improve collective reputations of disadvantaged groups through short-term fairness interventions. Analyze the conditions under which this approach may Pareto-dominate strategies of statistical discrimination or "group-blind" hiring. Consider the implications for designing fair hiring policies in an increasingly automated employment landscape.