Prejudice & Bias and Identity Neutral Policy

Identity neutral hiring is assessed in an ability signaling model. Assuming some employers wrongly perceive one group, the advantaged with more wealth, to have superior productivity over another (the disadvantaged), identity neutral recruitment improves the disadvantaged group's average wage and its high ability individuals' signaling opportunities, if the proportion of biased/prejudiced employers is sufficiently high. But this also means loss of positive discrimination in favor of the disadvantaged by unprejudiced employers under sighted hiring. When there is job hierarchy, relative to sighted hiring identity neutral policy may (i) improve jobs/skills assignment, or (ii) lead to unfilled vacancies and unemployment