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Affirmative Action and Its Persistent Effects: A New Perspective
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This article examines how firms respond to federal affirmative action regulation when it is temporary. As intended, affirmative action increases a firm's black share of employees. Strikingly, the black share continues to grow at a similar pace even after a firm is deregulated. This persistence is driven in part by affirmative action inducing employers to improve their methods for screening potential hires.