From a brilliant post by Katja Grace:
“Discrimination’ can mean all sorts of things. One of the main ones, and what it will mean in this post, is differential treatment of people from different groups, due to real or imagined differences in average group features. Discrimination is a problem because the many people who don’t have the supposed average features of a group they are part of are misconstrued as having them, and offered inappropriate treatment and opportunities as a result. For instance a capable and trustworthy middle aged man may miss out on a babysitting job for which he is truly the best candidate because the parents take his demographic information as reason not to trust him with their children.
This means that ‘discrimination’ is really a misnomer; this problem is due to lack of discrimination. In particular lack of discrimination between members of the groups. […] Even if observers can’t discriminate perfectly, more ability to discriminate means less misrepresentation.”
“The usual solution suggested for ‘discrimination’ is for everyone to forget about groups and act only on any specific evidence they have about individuals. Implicitly this advice is to expect everyone to have the average characteristics of the whole population except where individual evidence is available. Notice that generalizing over a larger group like this should increase the misrepresentation of people, and thus their inappropriate treatment. Recall that that was the original problem with discrimination.”
“if you want to stop discrimination because it causes people to be treated as less than they are, then work on making it easier to discriminate between people further, rather than harder to discriminate between them at all. Help people signal their traits cheaply and efficiently distinguish between others. In the absence of perfect discrimination between individuals, the other end of the spectrum is not the next best thing, it’s the extreme of misrepresentation.”
I seem to remember making some of the same points not long ago here.