Online Appendix to 'On the Permanent Nature of Affirmative Action Policies'

In Section 1 of this online appendix, we briefly suggest how our model can also accommodate the case when affirmative action takes the form of a biased promotion process. In Section 2, we present a generalized model in which we allow for strategic behavior by workers (Section 2.1), for affirmative action causing a labor market congestion externality (Section 2.2) and we microfound the wage-setting behavior of firms with Bertrand competition (Section 2.3). Section 2.4 includes the proofs of these additional results