An Analysis of Quits, Dismissals, and Promotions at a Large Retail Firm

Using data from a large U.S. retail firm, we examine how differences in race, age, and gender between a manager and a subordinate affect the subordinate’s rate of quits, dismissals, and promotions. These differences can have statistically significant and sometimes large effects— especially differences in race and ethnicity. In most cases, these differences produce adverse effects—i.e., higher quit and dismissal rates, and lower promotion rates. But in three cases, where traditionally lower-status managers supervise higher-status employees, differences produce favorable effects. With respect to race, this means having a different-race manager hurts black and Hispanic employees, but helps white employees.