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D_Malik comments on Contrarian LW views and their economic implications - Less Wrong Discussion

16 Post author: Larks 08 October 2014 11:48PM

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Comment author: D_Malik 10 October 2014 03:50:24AM 9 points [-]

According to gwern,

In his autobiography, Alan Greenspan says he did exactly that: he hired underpriced women and made money from not being sexist. Similarly, I have read of a company or agency which does the same thing in highly sexist South Korea, and for other forms of discrimination, we have companies specializing in hiring discriminated-against people on the autism spectrum and making money off the difference. If you want to prove a market isn’t efficient, simply reliably make excess risk-adjused returns…

Comment author: ESRogs 10 October 2014 11:21:10PM *  2 points [-]

I have read of a company or agency which does the same thing in highly sexist South Korea, and for other forms of discrimination

Thanks for including that. This suggests the idea that you could profit off of looking for places where discrimination is greatest and going against the trend. This seems socially valuable too (assuming you're not capturing all of the gains for yourself, which you probably wouldn't be). Gwern, if you're reading this, do you remember which company this was?

ETA: Found some references:

It Pays to Hire Women in Countries That Won’t (HBS)

Profiting from sexism (Economist)

Comment author: gwern 11 October 2014 05:51:36PM 2 points [-]

Gwern, if you're reading this, do you remember which company this was?

Not offhand. I believe I read it in the K-blogosphere, a mention of a legal firm or something white-collar like that which made a point of hiring women because South Korea is extremely sexist. I probably excerpted it to my Evernotes, but it'd be buried in thousands of other clippings mentioning Korea.

Comment author: ESRogs 11 October 2014 06:10:07PM 0 points [-]

Oh, once I found the linked articles I assumed what you'd read was about the same study. Do you think it was something independent of that?

Comment author: gwern 11 October 2014 06:18:59PM 2 points [-]

Yes, those two were anecdotes, not studies. I wouldn't be surprised in the least bit if there were studies pointing the same way, though, but I've never looked: the point is obvious enough that it doesn't really need to be argued for.

Comment author: ESRogs 12 October 2014 08:14:52PM *  2 points [-]

those two were anecdotes, not studies

Did you miss this (from the HBS link)?

"Employing women who are excluded by their own countries' labor markets is a growing trend for firms with international branch offices, says Harvard Business School professor Jordan Siegel. He discusses the issue in a new study titled "Multinational Firms, Labor Market Discrimination, and the Capture of Competitive Advantage by Exploiting the Social Divide", which he co-wrote with Lynn Pyun of MIT and B.Y. Cheon of Hanshin University and the Korea Labor Institute."

Edit: Oh, or did you mean that what you'd read before was just anecdotes?

Comment author: gwern 12 October 2014 09:10:24PM 2 points [-]

Edit: Oh, or did you mean that what you'd read before was just anecdotes?

That. http://www.hbs.edu/faculty/Publication%20Files/11-011_512c2b3a-2df5-41f9-a4ec-99af4716ba5f.pdf sounds interesting though.

Comment author: Larks 10 October 2014 10:35:58PM 1 point [-]

Yup - exactly.

Note though that Greenspan did this a very long time ago. It's plausible that the feminists were right and the market was inefficient decades ago, but they are wrong and the market is efficient contemporaneously.