480. How Much Does Discrimination Hurt the Economy? (Replay)

<p>Evidence from Nazi Germany and 1940’s America (and pretty much everywhere else) shows that discrimination is incredibly costly — to the victims, of course, but also the perpetrators. One modern solution is to invoke a diversity mandate. But new research shows that’s not necessarily the answer.</p><p> </p><p>RESOURCES:</p><ul><li>"<a href="https://www.journals.uchicago.edu/doi/abs/10.1086/714994?af=R">Discrimination, Managers, and Firm Performance: Evidence from 'Aryanizations' in Nazi Germany</a>," by Kilian Huber, Volker Lindenthal, and Fabian Waldinger (<i>Journal of Political Economy,</i> 2021).</li><li>"<a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3908020">Diversity and Performance in Entrepreneurial Teams</a>," by Sophie Calder-Wang, Paul A. Gompers, and Kevin Huang (<i>SSRN,</i> 2021).</li><li>"<a href="https://www.nber.org/papers/w29053">Systemic Discrimination Among Large U.S. Employers</a>," by Patrick M. Kline, Evan K. Rose, and Christopher R. Walters (<i>NBER Working Papers, </i>2021).</li><li><a href="https://www.amazon.com/gp/product/1620974428/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=freakonomic08-20&creative=9325&linkCode=as2&creativeASIN=1620974428&linkId=2c56227bca27a9e0a96f0302e13fa635"><i>City of Champions: A History of Triumph and Defeat in Detroit</i></a><i>, </i>by Silke-Maria Weineck and Stefan Szymanski (2020).</li><li>"<a href="https://onlinelibrary.wiley.com/doi/abs/10.3982/ECTA11427">The Allocation of Talent and U.S. Economic Growth</a>," by Chang-Tai Hsieh, Erik Hurst, Charles I. Jones, and Peter J. Klenow (<i>Econometrica,</i> 2019).</li><li><a href="https://www.amazon.com/gp/product/B07Y3T1KVF/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=freakonomic08-20&creative=9325&linkCode=as2&creativeASIN=B07Y3T1KVF&linkId=1a220d53013bdcf66c843e21aa18a8cb"><i>Genius & Anxiety: How Jews Changed the World, 1847-1947</i></a><i>, </i>by Norman Lebrecht (2019).</li><li>"<a href="https://www.nber.org/papers/w23454">And the Children Shall Lead: Gender Diversity and Performance in Venture Capital</