Using more than two years of personnel data from a large U.S. retail chain, the study found that when a black manager in a typical store is replaced by a white, Asian or Hispanic manager, the share of newly hired blacks falls from 21 to 17 percent, and the share of whites hired rises from 60 to 64 percent.
The effect is even stronger for stores located in the South, where the replacement of a black manager causes the share of newly hired blacks to fall from 29 to 21 percent. In locations with large Hispanic populations, Hispanics hire more Hispanics and fewer whites than white managers. The study is out this month in the Journal of Labor Economics.
The finding is clear evidence that the race or ethnicity of those who make hiring decisions can have a strong impact in the racial makeup of a company's workforce, says Laura Giuliano, an assistant professor of economics at the University of Miami School of Business, who authored the study with David Levine and Jonathan Leonard from the University of California, Berkeley.
How strong is the impact? Consider a typical store with 40 employees located in the Southern U.S. According to the data, replacing a black manager with a non-black manager would result in the replacement of three to four black workers with white workers over the course of one year.
The effect in a non-Southern store would also be significant, if a bit more subtle. Replacing a black manager in a non-Southern store would result in one black worker being replaced by a white worker over a year.
"From the viewpoint of a district manager who is observing just a small sample of stores, this change might go unnoticed or appear insignificant," Giuliano said. "However, the change may appear more significant from the point of view of job seekers -- and especially black job seekers. In fact, the change in non-Southern stores amounts to a proportional decline of 15 percent in the number of blacks employed."
The data used by Giuliano and her colleagues were especially well suited to sorting out the role race plays in hiring. While previous studies have also suggested that manager race plays a role, those studies have been unable to distinguish that role from other factors such as the demographic makeup of the local labor pool. Giuliano and her colleagues were able to isolate the race factor by tracking individual stores that experienced a change of manager.
"This means we can compare the hiring patterns of consecutive managers of different races in the same store," she said. "Hence we can isolate the effect of a manager's race by comparing the hiring patterns of managers when they hire from similar labor pools under similar conditions."
The researchers were also able to use their data to offer some partial explanations for why these differences in hiring patterns exist.
They found that both black and non-black managers tend to hire people who live close to them. So if black managers live in predominantly black neighborhoods, their hiring network is also likely to be predominantly black.
The research also suggests that black managers hire fewer whites because whites may be less willing to work for black managers. The study found that when a white manager is replaced with a black manager, the rate at which white workers quit their jobs increases by 15 percent.
"We interpret this increase in the white quit rate as evidence of discriminatory sorting by white job seekers," the authors write. "It implies that whites who dislike working for black managers often avoid working for black managers in the first place."
Laura Giuliano, David I. Levin and Jonathan Leonard, "Manager Race and the Race of News Hires." Journal of Labor Economics 27:4 (October 2009).
Since 1983, the Journal of Labor Economics has presented international research that examines issues affecting the economy as well as social and private behavior. The Journal publishes both theoretical and applied research results relating to the U.S. and international data.
The University of Miami School of Business Administration is a comprehensive business school, offering undergraduate business, full-time MBA, Executive MBA, MS, PhD and non-degree executive education programs. One of 12 colleges and schools at the University of Miami, the School is located in a major hub of international trade and commerce and acclaimed for the global orientation and diversity of its faculty, students and curriculum. The School delivers its programs at its main campus in Coral Gables as well as at locations across Florida and abroad.
Frugal Innovations: when less is more
19.04.2017 | Fraunhofer-Institut für Arbeitswirtschaft und Organisation IAO
Europe's microtechnology industry is attuned to growth
10.03.2017 | IVAM Fachverband für Mikrotechnik
The nearby, giant radio galaxy M87 hosts a supermassive black hole (BH) and is well-known for its bright jet dominating the spectrum over ten orders of magnitude in frequency. Due to its proximity, jet prominence, and the large black hole mass, M87 is the best laboratory for investigating the formation, acceleration, and collimation of relativistic jets. A research team led by Silke Britzen from the Max Planck Institute for Radio Astronomy in Bonn, Germany, has found strong indication for turbulent processes connecting the accretion disk and the jet of that galaxy providing insights into the longstanding problem of the origin of astrophysical jets.
Supermassive black holes form some of the most enigmatic phenomena in astrophysics. Their enormous energy output is supposed to be generated by the...
The probability to find a certain number of photons inside a laser pulse usually corresponds to a classical distribution of independent events, the so-called...
Microprocessors based on atomically thin materials hold the promise of the evolution of traditional processors as well as new applications in the field of flexible electronics. Now, a TU Wien research team led by Thomas Müller has made a breakthrough in this field as part of an ongoing research project.
Two-dimensional materials, or 2D materials for short, are extremely versatile, although – or often more precisely because – they are made up of just one or a...
Two researchers at Heidelberg University have developed a model system that enables a better understanding of the processes in a quantum-physical experiment...
Glaciers might seem rather inhospitable environments. However, they are home to a diverse and vibrant microbial community. It’s becoming increasingly clear that they play a bigger role in the carbon cycle than previously thought.
A new study, now published in the journal Nature Geoscience, shows how microbial communities in melting glaciers contribute to the Earth’s carbon cycle, a...
20.04.2017 | Event News
18.04.2017 | Event News
03.04.2017 | Event News
21.04.2017 | Physics and Astronomy
21.04.2017 | Health and Medicine
21.04.2017 | Physics and Astronomy