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Racial Bias in the Manager-Employee Relationship: An Analysis of Quits, Dismissals, and Promotions at a Large Retail Firm

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Author Info

  • Laura Giuliano
  • David I. Levine
  • Jonathan Leonard

Abstract

Using data from a large U.S. retail firm, we examine how racial matches between managers and their employees affect rates of employee quits, dismissals, and promotions. We exploit changes in management at hundreds of stores to estimate hazard models with store fixed effects that control for all unobserved differences across store locations. We find a general pattern of own-race bias in that employees usually have better outcomes when they are the same race as their manager. But we do find anomalies in this pattern, particularly when the manager-employee match violates traditional racial hierarchies (for example, nonwhites managing whites).

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File URL: http://jhr.uwpress.org/cgi/reprint/46/1/26
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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 46 (2011)
Issue (Month): 1 ()
Pages: 26-52

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Handle: RePEc:uwp:jhriss:v:46:y:2011:i:1:p:26-52

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Web page: http://jhr.uwpress.org/

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References

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  1. Laura Giuliano & David I. Levine & Jonathan Leonard, 2009. "Manager Race and the Race of New Hires," Journal of Labor Economics, University of Chicago Press, vol. 27(4), pages 589-631, October.
  2. Kate Antonovics & Brian G. Knight, 2009. "A New Look at Racial Profiling: Evidence from the Boston Police Department," The Review of Economics and Statistics, MIT Press, vol. 91(1), pages 163-177, February.
  3. Bentley W. MacLeod, 2003. "Optimal Contracting with Subjective Evaluation," American Economic Review, American Economic Association, vol. 93(1), pages 216-240, March.
  4. Thomas S. Dee, 2005. "A Teacher Like Me: Does Race, Ethnicity, or Gender Matter?," American Economic Review, American Economic Association, vol. 95(2), pages 158-165, May.
  5. Joseph Price & Justin Wolfers, 2010. "Racial Discrimination Among NBA Referees," The Quarterly Journal of Economics, MIT Press, vol. 125(4), pages 1859-1887, November.
  6. Kenneth R Troske & William J Carrington, 1996. "Interfirm Segregation and the Black/White Wage Gap," Working Papers 96-6, Center for Economic Studies, U.S. Census Bureau.
  7. Susan Athey & Christopher Avery & Peter Zemsky, 1998. "Mentoring and Diversity," NBER Working Papers 6496, National Bureau of Economic Research, Inc.
  8. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226041162, March.
  9. Lang, Kevin, 1986. "A Language Theory of Discrimination," The Quarterly Journal of Economics, MIT Press, vol. 101(2), pages 363-82, May.
  10. Anbarci, Nejat & Lee, Jungmin, 2008. "Speed Discounting and Racial Disparities: Evidence from Speeding Tickets in Boston," IZA Discussion Papers 3903, Institute for the Study of Labor (IZA).
  11. Timothy Bates, 1994. "Utilization of minority employees in small business: A comparison of nonminority and black-owned urban enterprises," The Review of Black Political Economy, Springer, vol. 23(1), pages 113-121, June.
  12. Michael A. Stoll & Steven Raphael & Harry J. Holzer, 2004. "Black job applicants and the hiring officer's race," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 57(2), pages 267-287, January.
  13. Donohue, John J, III & Levitt, Steven D, 2001. "The Impact of Race on Policing and Arrests," Journal of Law and Economics, University of Chicago Press, vol. 44(2), pages 367-94, October.
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Citations

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Cited by:
  1. Laura Giuliano & Michael R. Ransom, 2013. "Manager Ethnicity and Employment Segregation," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 66(2), pages 346-379, April.
  2. Gabriel Burdin, 2014. "Are Worker-Managed Firms More Likely to Fail than Conventional Enterprises? Evidence from Uruguay," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 67(1), pages 202-238, January.
  3. Anthony Edo & Nicolas Jacquemet & Constantine Yannelis, 2013. "Language Skills and Homophilous Hiring Discrimination: Evidence from Gender- and Racially-Differentiated Applications," Documents de travail du Centre d'Economie de la Sorbonne 13058, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  4. Garnero, Andrea & Kampelmann, Stephan & Rycx, François, 2013. "The Heterogeneous Effects of Workforce Diversity on Productivity, Wages and Profits," CEPREMAP Working Papers (Docweb) 1304, CEPREMAP.
  5. Feld, Jan & Salamanca, Nicolás & Hamermesh, Daniel S., 2014. "Endophilia or Exophobia: Beyond Discrimination," Working Papers in Economics 593, University of Gothenburg, Department of Economics.
  6. David Masclet & Emmanuel Peterle & Sophie Larribeau, 2012. "The Role of Information in Deterring Discrimination: A New Experimental Evidence of Statistical Discrimination," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201238, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
  7. Yuki, Kazuhiro, 2012. "Stereotypes, segregation, and ethnic inequality," MPRA Paper 39704, University Library of Munich, Germany.

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