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Manager Race and the Race of New Hires

  • Giuliano, Laura
  • Levine, David I.
  • Leonard, Jonathan

Using personnel data from a large U.S. retail firm, we examine whether the race of the hiring manager affects the racial composition of new hires. We exploit manager changes at hundreds of stores to estimate models with store fixed effects. We find significant effects of manager race and ethnicity. First, all non-black managers—i.e., whites, Hispanics, and Asians—hire more whites and fewer blacks than do black managers. The differences between non-black and black managers are especially large in the South. Second, in locations with large Hispanic populations, Hispanic managers hire more Hispanics and fewer whites than white managers.

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Paper provided by Institute of Industrial Relations, UC Berkeley in its series Institute for Research on Labor and Employment, Working Paper Series with number qt2cb2q1h1.

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Date of creation: 01 Sep 2006
Date of revision:
Handle: RePEc:cdl:indrel:qt2cb2q1h1
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  1. Giorgio Topa & Stephen Ross & Patrick Bayer, 2005. "Place of Work and Place of Residence: Informal Hiring Networks and Labor Market Outcomes," Working Papers 05-23, Center for Economic Studies, U.S. Census Bureau.
  2. Judith Hellerstein & David Neumark, 2007. "Workplace Segregation in the United States: Race, Ethnicity, and Skill," Working Papers 07-02, Center for Economic Studies, U.S. Census Bureau.
  3. 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.
  4. 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.
  5. Giuliano, Laura & Levine, David I. & Leonard, Jonathan, 2006. "Do Race, Age, and Gender Differences Affect Manager-Employee Relations? An Analysis of Quits, Dismissals, and Promotions at a Large Retail Firm," Institute for Research on Labor and Employment, Working Paper Series qt9tc8n5j7, Institute of Industrial Relations, UC Berkeley.
  6. 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.
  7. Hausman, Jerry & McFadden, Daniel, 1984. "Specification Tests for the Multinomial Logit Model," Econometrica, Econometric Society, vol. 52(5), pages 1219-40, September.
  8. Chamberlain, Gary, 1980. "Analysis of Covariance with Qualitative Data," Review of Economic Studies, Wiley Blackwell, vol. 47(1), pages 225-38, January.
  9. 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.
  10. Michael A. Stoll & Steven Raphael & Harry J. Holzer, 2004. "Black Job Applicants and the Hiring Officer's Race," ILR Review, Cornell University, ILR School, vol. 57(2), pages 267-287, January.
  11. repec:tpr:qjecon:v:101:y:1986:i:2:p:363-82 is not listed on IDEAS
  12. Marc Bendick & Charles Jackson & Victor Reinoso, 1994. "Measuring employment discrimination through controlled experiments," The Review of Black Political Economy, Springer, vol. 23(1), pages 25-48, June.
  13. Ted Mouw, 2002. "Are black workers missing the connection? The effect of spatial distance and employee referrals on interfirm racial segregation," Demography, Springer, vol. 39(3), pages 507-528, August.
  14. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162.
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