Book Chapter – Stratification Economics: A Primer and an Explanation on Opposition to Affirmative Action

Chapter Authors: Lucas Hubbard and William A. Darity Jr.

Book: Handbook on Economics of Discrimination and Affirmative Action

Book Editor: Ashwini Deshpande

Date of Publication: November 26, 2022

Abstract: In this chapter, stratification economics provides a vehicle for analyzing attitudes toward affirmative action. The chapter begins with a historical example of an American politician who relied on racial tension and the fears of the dominant group to garner support to promote his campaign. This offers an introduction to the framework and guiding elements of stratification economics – most notably, its emphasis on relative, identity-based, group status. This is followed by a discussion of elemental principles of stratification economics and a summary of a range of its prior applications to explain intergroup disparities, considering outcomes in labor markets, social markets, public good allocations, and more. Subsequent sections explore the consistency of this approach with the varying attitudes expressed toward various group-targeted policies in America. In particular, historical examples are gathered into two categories for analysis and exploration: policies that become desirable when they no longer risk benefitting the lower-status (subaltern) group’s status and policies that are undesirable because they are expected to improve the subaltern group’s relative position. Finally, the chapter concludes with additional thoughts on the potential for targeted and universal proposals to achieve popular support in order to advance equity.

Key Findings

  • Unfortunately, stratification economics does not afford much optimism for effective policy solutions.
  • On the face of it, universal policies that disproportionately benefit the subordinate group might hold the greatest political possibility.
  • Universal policies– and especially universal opportunities– are rarely truly universal. They can be easily derailed by bad actors, in the winding journey from fruition to implementation, to become targeted policies hiding behind a veneer of universality, as was the case with the GI Bill.
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