"Though generally more widespread than might have been expected, equal opportunities policies and practices are less common among small and medium-sized enterprises (SMEs) than among larger firms, especially when the policies are not mandatory, as in the United Kingdom or for the smallest firms in Australia. The authors' investigation does not suggest that more coercive legislation forces enterprises to adopt practices that negatively affect their performance. On the contrary, equal opportunities policies are associated with higher productivity in all groups except British SMEs. The positive effect is strongest among the enterprises subject to the most stringent regulatory requirements."

Support: Paper