Access to public services is a fundamental aspect of citizenship, and equal access to these services is a cornerstone of democratic societies (1, 2). However, evidence of racial and ethnic discrimination in access to public services, also referred to as bureaucratic discrimination, has been found in a wide range of studies (3, 4, 5). One key finding of this literature is that frontline employees who directly interact with (potential) clients disproportionately increase administrative burdens (i.e., the hassles that make accessing public services more onerous) for members of racially and ethnically minoritized groups, which acts as a deterrent and thereby decreases equity in access to public services (6, 7).
The underlying mechanism explaining why we observe patterns of bureaucratic discrimination is unclear. The classical debate in economics of why people discriminate based on observed individual characteristics distinguishes between models of taste-based and statistical discrimination (8). Meanwhile, social psychologists put forth models of stereotyping and implicit bias (9). These approaches are stylized examples of why people treat members of racially minoritized groups differently; however, in the context of public service delivery, scholars lack a theoretical model explaining the underlying reasons for bureaucratic discrimination. This is important because the process of public service delivery is qualitatively different from making hiring decisions or choosing between potential tenants for an apartment. While public services ought to be delivered sine ira et studio – without hatred or passion, as Max Weber puts it (10) – the distinct institutional characteristics of public service organizations shape discriminating agents’ incentive structures and thus their motive to discriminate. Specifically, we argue that organizations that operate within public service markets may be incentivized to treat potential clients differentially because of the potential economic consequences (11, 12).
To inform our theoretical predictions, we draw from models of statistical discrimination which posit that unequal treatment is the result of an ecological fallacy in which the discriminating agent applies group-level knowledge as a stereotype towards members of specific groups to compensate for missing individual-level information (13, 14).1 <While standard models of statistical discrimination assume that discriminating agents have full knowledge about relevant statistical information at the group level, stereotypes about group differences may lead to distortions of accurate statistical beliefs (20). However, the underlying process of accurate or inaccurate statistical discrimination is substantively the same: group-level information and beliefs are used as stereotypes against individuals.> Missing information may include indicators of future productivity in labor markets, or bureaucratic success criteria in the case of public service delivery (15). Bureaucratic success criteria comprise client characteristics that are associated with organizational success – such as employment agencies focusing on clients with the highest chance of gaining employment, or college pipeline programs who prioritize students with the highest chances of getting into college (16). These criteria often have economic consequences such as funding, organizational expenses, or work effort. Thus, Michael Lipsky in his seminal work on street-level bureaucracy argues that frontline employees tend to prioritize clients who are most likely to succeed, and disregard those who are perceived as costly to the organization (17). Indeed, evidence for cream skimming, defined as the intentional selection, or avoidance, of certain clients into public services or programs, has been found in areas with high-powered performance management regimes (18) or within marketized public services (19), where economic consequences encourage discriminatory practices.
When engaging in cream-skimming, bureaucratic success criteria need to be directly observable. However, this is often not the case because of two reasons: (i) they are impending and/or (ii) historical proxies are typically not shared with frontline staff. Thus, when direct information about bureaucratic success criteria are not available, discriminating agents use imperfect information – observable client characteristics that are correlated with the respective criteria in question. We argue that this leads to bureaucratic discrimination. In this study, we test whether this generalized mechanism of bureaucratic discrimination predicts unequal treatment in access to public services that are delivered within public service markets. This is a substantial addition to the literature on bureaucratic discrimination and administrative burden in citizen-state interactions. It also has normative implications for market-based models of public service delivery arrangements because it implies that the economic incentive structures within public service delivery organizations may induce discriminatory practices.
The charter school sector, where education – a key public service – is provided under a market-based model, offers a unique opportunity to test our theoretical prediction. Charter schools need to attract students and competitive funding to survive economically (21), placing a monetary incentive on schools to focus on students who are less costly and have high academic achievement (22). This provides a motive to prioritize students who are easier-to-serve and are projected to perform well academically in the future. Concerns over this type of cream skimming in the charter sector have been voiced repeatedly (23), and some evidence suggests that charters prioritize students who are performing well academically (24, 25), while others found little evidence to this effect (26, 27). In a pre-study experiment among 490 charter school principals, we found that students who perform well academically are more likely to be prioritized for admission (see SI Appendix S6). Specifically, in the context of a conjoint-based admission task, principals are about 10 percent more likely to say they would admit a child who tests above state average in math as compared to a child who tests well below state average.
Unlike our conjoint-based admissions task, test score information is not always observable, leaving frontline employees working in public service delivery organizations with imperfect information as they attempt to prioritize students with the highest future test scores (28). Here, race may serve as a shorthand for being a potentially costly client because it is correlated with numerous bureaucratic success criteria such as standardized test scores, english language proficiency, disciplinary records, and special needs status (29). Taking the well-established black-white achievement gap in standardized testing in the U.S. as an example (30), African-American students compared to White students perform less well academically in terms of their literacy, numeracy and writing skills. But this may not be true for a specific student; here, group-level statistics may be used as a stereotype towards individual students when direct information (like standardized test scores or GPAs) are unavailable. The key empirical implication is that bureaucratic discrimination may be, in part, a response to missing information about bureaucratic success criteria. Indeed, when contacted prior to applying to either enroll into the school or its respective lottery, schools have no access to direct information about students’ academic performance. Instead, school officials may use imperfect signals such as race to weed-out undesirable students by making the application process more onerous or burdensome.
Frontline employees of charter schools – like any street-level bureaucrat who directly interacts with clients – can increase administrative burdens of prospective clients along different dimensions. The administrative burden framework distinguishes between three different types of costs that clients who are interacting with public service delivery organizations can encounter: learning, compliance or psychological costs (31). Learning costs include the difficulty that people face in trying to find, access, and understand information required to access public services (32). This includes learning where and how to apply to a charter school or a district lottery. Compliance costs are the bureaucratic rules and paperwork required for receiving said services that determine whether applicants are eligible. This includes mean-testing for welfare programs, or selective entrance requirements for schools. Lastly, psychological costs represent the stress and stigma, including loss of autonomy, that applicants face in the process of applying, or while receiving services. A common example of psychological costs is the stigmatization that recipients of means-tested benefits sometimes face from other members of the public, but psychological costs can also arise from interactions with unfriendly or unhelpful frontline workers. What all of these different costs have in common is that they can be altered by frontline workers and those who directly interact with clients – like the staff that answers information inquiries. These frontline workers can move towards clients (33) and provide them with extra information and support. But they can also give applicants incomplete information, or simply not respond to requests at all (34). While altering administrative burdens does not lead to discrimination per se, doing so disproportionately for clients with certain observed characteristics leads to bureaucratic discrimination.
Audit studies of public and charter schools have tested for some types of bureaucratic discrimination but have not provided a clean test of the mechanism we propose that may be driving discrimination. First, Bergman et al., (2018) conducted an audit study with a sample of U.S. public and charter schools and found evidence of discrimination against students with disabilities, students with lower test scores, and Hispanic students (35). The study’s results emphasize the distinct role of test scores for charter schools in selecting students. However, it does not test whether these bureaucratic success criteria changed the likelihood of discrimination. Second, in the context of public schools in Denmark, Olsen et al., (2020) test whether positive or negative performance information about a Muslim student changes the likelihood that they are discriminated against in the responses of public school officials in Denmark (36). They find that discrimination against Muslim students persists regardless of good or bad student grades; however, they did not include an experimental condition that tests for discrimination in the absence of any information on student academic achievement. In sum, while these two studies examine whether there is evidence of discrimination, they did not test whether information, relative to no information on bureaucratic success mitigates racial/ethnic discrimination. This is an important distinction because our theoretical framework emphasizes the availability of student information, and not its valence, as a key driver of discriminatory practices in the context of cream skimming. In another recent audit study of a sample of U.S. public and charter schools, Oberfield and Incantalupo (2021) test whether positive or negative performance information mitigates anti-black discrimination relative to a no information condition (37). However, the authors do not specifically reference test scores and grades as key bureaucratic success criteria; instead, the study’s treatment conditions highlight student conduct and implies that parents want to place their kids in advanced placement courses, or that they need extra help because they struggle with school. These factors are not as directly linked to race as test scores. As a result, the study’s findings are in contrast to our theoretical predictions, which is likely a result of not directly referencing the most important bureaucratic success criteria that is linked to race: standardized test scores. We build on these studies by directly testing whether the presence of information regarding the performance on standardized tests mitigates anti-black discrimination on the full population of U.S. charter schools.
In the remainder of this article, we test whether front-line employees will increase administrative burdens for racially minoritized clients in the absence of any signal of bureaucratic success criteria in a nationwide email correspondence audit experiment including all charter school principals in the U.S. Specifically, we argue that student performance on standardized tests serves as the most important bureaucratic success criteria for charter schools. The mere absence of such information will increase the probability that school administrators use imperfect information, such as race, as a proxy to determine whether it is worth investing time into recruiting the student to enroll in their school. This process, we argue, leads to racial discrimination in access to charter schools.