> Not only did competition not end discrimination, there was enough discrimination that the act of not discriminating provided a significant competitive advanta

> Not only did competition not end discrimination, there was enough discrimination that the act of not discriminating provided a significant competitive advantage for Townsend-Greenspan. And this is in finance, which is known for being cutthroat. And not just any part of finance, but one where it's PhD economists hiring other PhD economists. This is one of the industries where the people doing the hiring are the most likely to be familiar with both the theoretical models and the empirical research showing that discrimination opens up market opportunities by suppressing wages of some groups. But even that wasn't enough to equalize wages between men and women when Greenspan took over Townsend-Greenspan in 1958 and it still wasn't enough when Greenspan left to become chairman of the Fed in 1987. That's the thing about discrimination. When it's part of a deep-seated belief, it's hard for people to tell that they're discriminating. > In tech, some people are concerned that increasing diversity will "lower the bar", but in sports, which has a more competitive hiring market than tech, we saw the opposite, increasing diversity raised the level instead of lowering it because it means hiring people on their qualifications instead of on what they look like. I don't disagree with people who say that it would be absurd for tech companies to leave money on the table by not hiring qualified minorities. But this is exactly what we saw in the sports we looked at, where that's even more absurd due to the relative ease of quantifying performance. And yet, for decades, teams left huge amounts of money on the table by favoring white players (and, in the case of hockey, non-French Canadian players) who were, quite simply, less qualified than their peers. The world is an absurd place. https://danluu.com/tech-discrimination/ https://danluu.com/tech-discrimination/