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Talking Economics: Understanding Discrimination

27 October, 2025

Why does discrimination persist even when it’s costly for firms and societies? In this episode of Talking Economics, CERGE-EI alumnus and University of Milan Associate Professor Vojtěch Bartoš explains how behavioral economics helps uncover the mechanisms behind bias — and how evidence-based tools can help reduce it.

Discrimination, as he explains, occurs when two otherwise identical individuals are treated differently based solely on a group attribute — for example, race or gender. “When equally qualified people are paid differently or denied opportunities, society wastes talent and firms lose potential profit.”

Vojtěch argues that discrimination persists for two main reasons: historical roots and information bias. Early humans relied on visible traits to distinguish “us” from “them,” a reflex that still shapes behavior today. In modern settings, people often act on stereotypes or incomplete information — what economists call statistical discrimination.

Behavioral economics, he says, helps explain how beliefs and biases are formed and updated. “People interpret new information through the lens of their existing stereotypes,” Vojtěch notes. 

Looking ahead, Vojtěch highlights promising ways to “break bias.” In a forthcoming book chapter, he explores interventions that combine insights from economics and psychology. “Providing more information, using anonymized applications, or fostering cooperative contact between groups can all help reduce discrimination,” he explains.

Discrimination, Vojtěch concludes, has deep historical and cognitive roots, but understanding its mechanisms is the first step toward change. “There is light at the end of the tunnel,” he says. “We’re finding that even small, well-designed interventions can make a difference.”

Tune in to our podcast on Spotify, Apple Podcasts, or YouTube to learn more.

Read the episode summary on the CERGE-EI Blog.