Secondary Bounded Rationality: A Theory of How Algorithms Reproduce Structural Inequality in AI Hiring

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1. Verfasser: Xiao, Jia
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Veröffentlicht: 2025
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author Xiao, Jia
author_facet Xiao, Jia
contents AI-driven recruitment systems, while promising efficiency and objectivity, often perpetuate systemic inequalities by encoding cultural and social capital disparities into algorithmic decision making. This article develops and defends a novel theory of secondary bounded rationality, arguing that AI systems, despite their computational power, inherit and amplify human cognitive and structural biases through technical and sociopolitical constraints. Analyzing multimodal recruitment frameworks, we demonstrate how algorithmic processes transform historical inequalities, such as elite credential privileging and network homophily, into ostensibly meritocratic outcomes. Using Bourdieusian capital theory and Simon's bounded rationality, we reveal a recursive cycle where AI entrenches exclusion by optimizing for legible yet biased proxies of competence. We propose mitigation strategies, including counterfactual fairness testing, capital-aware auditing, and regulatory interventions, to disrupt this self-reinforcing inequality.
format Preprint
id arxiv_https___arxiv_org_abs_2507_09233
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Secondary Bounded Rationality: A Theory of How Algorithms Reproduce Structural Inequality in AI Hiring
Xiao, Jia
Computers and Society
AI-driven recruitment systems, while promising efficiency and objectivity, often perpetuate systemic inequalities by encoding cultural and social capital disparities into algorithmic decision making. This article develops and defends a novel theory of secondary bounded rationality, arguing that AI systems, despite their computational power, inherit and amplify human cognitive and structural biases through technical and sociopolitical constraints. Analyzing multimodal recruitment frameworks, we demonstrate how algorithmic processes transform historical inequalities, such as elite credential privileging and network homophily, into ostensibly meritocratic outcomes. Using Bourdieusian capital theory and Simon's bounded rationality, we reveal a recursive cycle where AI entrenches exclusion by optimizing for legible yet biased proxies of competence. We propose mitigation strategies, including counterfactual fairness testing, capital-aware auditing, and regulatory interventions, to disrupt this self-reinforcing inequality.
title Secondary Bounded Rationality: A Theory of How Algorithms Reproduce Structural Inequality in AI Hiring
topic Computers and Society
url https://arxiv.org/abs/2507.09233