OPPORTUNITY | Inequalities in decision-making at critical junctions in life: The role of ability signals for sorting and selection

Summary
School track decisions, university or major choice, and initial job finding are all decisive for seizing life opportunities. When individuals from different socio-economic groups make different high-stakes decisions at these critical junctions, this can reinforce existing inequalities and lead to lock-in effects that are difficult to undo later in life. Understanding decision-making at these stages is thus fundamental to analyse and tackle inequality of opportunity.

Individuals and evaluators make critical educational or occupational decisions under imperfect information due to uncertainties about true ability and future productivity. To resolve uncertainty, ability signals and their interpretation – both received and sent – are crucial components of decision-making, sorting and selection.

OPPORTUNITY analyses the role of ability signals (such as grades, standardized tests, certificates, degrees, or CV information) for inequalities in high-stakes decision-making under uncertainty and inequality-reinforcing statistical and stereotypical discrimination by socio-economic background. To this end, it will draw on i) experimental methods in lab and field to study the role of social environment and ability signals for unequal educational and occupational choices; ii) administrative records to obtain information about absolute and relative ability signals (grades and degrees) awarded at various institutions over time; iii) econometric techniques that help exploit exogenous variation to make causal inference about the role of SES and different ability signals for efficient sorting and selection.

OPPORTUNITY will promote an innovative research agenda providing novel answers on how to mitigate the unfair and inefficient allocation of talent. It will inform about policies that provide resources or changing ability signals to enhance equality of opportunity, one of the most urgent topics in Europe’s diverse, aging, and increasingly segregated societies.
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More information & hyperlinks
Web resources: https://cordis.europa.eu/project/id/101117388
Start date: 01-04-2024
End date: 31-03-2029
Total budget - Public funding: 1 500 000,00 Euro - 1 500 000,00 Euro
Cordis data

Original description

School track decisions, university or major choice, and initial job finding are all decisive for seizing life opportunities. When individuals from different socio-economic groups make different high-stakes decisions at these critical junctions, this can reinforce existing inequalities and lead to lock-in effects that are difficult to undo later in life. Understanding decision-making at these stages is thus fundamental to analyse and tackle inequality of opportunity.

Individuals and evaluators make critical educational or occupational decisions under imperfect information due to uncertainties about true ability and future productivity. To resolve uncertainty, ability signals and their interpretation – both received and sent – are crucial components of decision-making, sorting and selection.

OPPORTUNITY analyses the role of ability signals (such as grades, standardized tests, certificates, degrees, or CV information) for inequalities in high-stakes decision-making under uncertainty and inequality-reinforcing statistical and stereotypical discrimination by socio-economic background. To this end, it will draw on i) experimental methods in lab and field to study the role of social environment and ability signals for unequal educational and occupational choices; ii) administrative records to obtain information about absolute and relative ability signals (grades and degrees) awarded at various institutions over time; iii) econometric techniques that help exploit exogenous variation to make causal inference about the role of SES and different ability signals for efficient sorting and selection.

OPPORTUNITY will promote an innovative research agenda providing novel answers on how to mitigate the unfair and inefficient allocation of talent. It will inform about policies that provide resources or changing ability signals to enhance equality of opportunity, one of the most urgent topics in Europe’s diverse, aging, and increasingly segregated societies.

Status

SIGNED

Call topic

ERC-2023-STG

Update Date

24-11-2024
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Horizon Europe
HORIZON.1 Excellent Science
HORIZON.1.1 European Research Council (ERC)
HORIZON.1.1.0 Cross-cutting call topics
ERC-2023-STG ERC STARTING GRANTS
HORIZON.1.1.1 Frontier science
ERC-2023-STG ERC STARTING GRANTS