Is Affirmative Action in Employment Still Effective in the 21st Century?

Abstract

We reassess the most widespread employment-based affirmative action regulation in the U.S., Executive Order 11246, which increased representation of Black workers in the late 1900s. We find no positive impact of the regulation on the share of Black workers in regulated firms in 2001–2014. These results extend to other protected groups and to earnings and worker flows. While firms entering regulation are positively selected, we show the regulation still has scope for impact. Analyzing audited establishments, we find weakened enforcement that rarely induces substantive changes and a disconnect between complying with the law as written and changing workforce outcomes.