Affirmative Action: More Efficient than Color Blindness

Abraham L. Wickelgren, Northwestern University

Abstract

One of the most compelling reasons against affirmative action is the principle of color blindness, that is, the idea that race is an irrelevant characteristic that should not affect higher education admissions or hiring decisions. Despite the intuitive appeal of color blindness, this paper shows that adherence to this principle impedes economic efficiency when there has been past discrimination based on race. Past discrimination creates inefficiencies in the economy that persist across generations. Because of this persistence, race remains a relevant characteristic for firms and universities looking to hire or admit the best candidates. Rather than color-blindness, affirmative action is necessary to reduce or eliminate these inefficiencies. This is true even if the firm or university can observe the economic status of the applicant. Thus, affirmative action based on economic disadvantage does not eliminate the need for affirmative action based on race, even if the only concern is economic efficiency.