Mediation’s Impact on Formal Discrimination Complaint Filing

Abstract

This article examines a natural field experiment in mediation of employment disputes at the United States Postal Service. Theory suggests that early mediation will lead to earlier, more durable settlements and transaction cost savings. Implementation of the mediation program resulted in a significant decrease in the number of formal discrimination complaints. A well designed employment dispute mediation program can resolve disputes at an earlier stage in the administrative process, and thereby reduce the number of formal complaints filed.