The impact of affirmative action: Evidence from a cross-country laboratory experiment

We use an implicit association test to examine whether there is evidence of a negative stereotype, with Australians relatively weak in mathematical skills vis a vis Chinese. Based on an existing stereotype, we examine the impact of affirmative action on the effort level of Australians (the favoured group) within the context of a cross-country (Australia and China) laboratory experiment. We compare results across two distinct affirmative action programs; one in which a well-established negative stereotype exists and a baseline where no known stereotype prevails. We find that the effort level declines in the baseline, but not in the presence of a real stereotype.