Suppose a plant has 1000 employees, half of whom are from a minority population. Suppose further that, in order to cut costs, a manager must layoff 100 employees. If she chooses only non-minority workers to lay off because an analysis of productivity data suggests they are, on average 5% less efficient then she is

Question

Quizplus · Accepted Answer

Choosing employees for layoff based on their group characteristics (in this case, non-minority status) and generalizing about their productivity is a form of statistical discrimination. This approach is illegal as it discriminates against individuals based on their group membership rather than their individual merits or performance.

Suppose a Plant Has 1000 Employees, Half of Whom Are