Attentional role of quota implementation

In this paper, we introduce a new role of quotas, e.g. labor market quotas: the attentional role. We study effect quota implementation on attention allocation strategy rationally inattentive (RI) manager. find that quotas induce attention: RI manager who is forced to fulfill quota, unlike an unrestricted manager, never rejects minority candidates without acquiring information about them. also demonstrate in our model are behaviorally equivalent subsidies. addition, analyze different goals social planner can achieve by implementing quotas. First, eliminate statistical discrimination, i.e. make chances being hired independent from group identity. Second, when hiring has inaccurate beliefs distribution candidates' productivities, behave as if she correct beliefs. Finally, show how results be used set level increases expected value chosen candidates.