data, discrimination and hate, economics, poverty, racism, work

Racism (13b): Race and Employment

In the U.S., and probably elsewhere as well, there’s a large discrepancy between the unemployment rates for people of different races. The easy answer is “racism!”, but that may be a bit too easy. Some of the discrepancy can be explained by education levels. However, perhaps it’s those discrepancies in education levels that are caused by racism and discrimination, at least in part. I personally believe that the discrepancies in unemployment rates have many causes, and that racism is definitely one of them. I’m just not sure about the particular weight we should accord it.

I’ve posted several times before about evidence of racism in the behavior of employers and recruiters. For instance, there’s substantial empirical proof that someone’s race can make it less likely to be called back for a job interview. In fact, black men without a criminal record are less likely to be called back for a job interview than white men with a criminal record. This has to have an impact on employment rates by race, which in turn has an impact on different poverty rates by race.

Some more evidence of discrimination in employment decisions is here:

White, Asian and Hispanic managers tend to hire more whites and fewer blacks than black managers do, according to a new study out of the University of Miami School of Business Administration. 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. … 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. (source)

Given the setup of the study, the racial discrepancies can’t be explained by demographics. You could assume that managers may not be motivated by racism but just anticipate the racism of their customers: they want to hire people of the same race as the majority of their customers because they believe that customers have racial preferences – or are racist – and prefer to be served by people of their own race. However, the customer population of a store doesn’t normally change when there’s a new manager. Hence, the change in recruitment policy by the new managers can’t be explained by customer demographics.

Another possible explanation is that managers, rather than being racist themselves, recruit in a racially biased way because they anticipate the racism of their existing employees: black managers hire fewer whites because they believe whites may be less willing to work for black managers. Or vice versa. And indeed:

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.” (source)

More on racism is here.

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8 thoughts on “Racism (13b): Race and Employment

  1. Tomboktu says:

    Another study to add to the pile: The Equality Authority in Ireland commissioned a study where sets of near identical CVs (resumes in USAean) in response to adverts, with the differences only in the names of the applicants: an Irish name, a German name, and Asian name, and an African name

    They had to stop the study early for ethical reasons: before they had finished the planned experiment, the evidence that there is discrimination in recruitment in Ireland was so clear cut that it would be unethical to put employers through a waste of time considering a CV from a fictional candidate.

    http://www.equality.ie/index.asp?locID=105&docID=794

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