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

Abstract

We reassess the most widespread employment-based affirmative action regulation in the US, 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 firms regulated from 2001 to 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 continued impacts. Analyzing audited establishments, we find evidence of a disconnect between complying with the law as written versus implementing meaningful changes that impact workforce outcomes.