Learning In Reverse Causal Strategic Environments With Ramifications on Two Sided Markets

arXiv:2404.13240v1 Announce Type: cross
Abstract: Motivated by equilibrium models of labor markets, we develop a formulation of causal strategic classification in which strategic agents can directly manipulate their outcomes. As an application, we compare employers that anticipate the strategic response of a labor force with employers that do not. We show through a combination of theory and experiment that employers with performatively optimal hiring policies improve employer reward, labor force skill level, and in some cases labor force equity. On …

abstract agents application arxiv causal classification cs.gt cs.lg employers environments equilibrium labor markets stat.ml type