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

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 across all outcomes 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 (e.g. nonwhites managing whites).

Suggested Citation

  • Giuliano, Laura & Levine, David I. & Leonard, Jonathan, 2009. "Racial Bias in the Manager-Employee Relationship: An Analysis of Quits, Dismissals, and Promotions at a Large Retail Firm," Institute for Research on Labor and Employment, Working Paper Series qt8pm012h0, Institute of Industrial Relations, UC Berkeley.
  • Handle: RePEc:cdl:indrel:qt8pm012h0
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    References listed on IDEAS

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    Cited by:

    1. Anica Rose, 2017. "Subjective Appraisals of Employee Potential: Do Gender and Managerial Level Matter?," Working Papers Dissertations 22, Paderborn University, Faculty of Business Administration and Economics.
    2. Anthony Edo & Nicolas Jacquemet & Constantine Yannelis, 2013. "Language Skills and Homophilous Hiring Discrimination: Evidence from Gender-and Racially-Differentiated Applications," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00877458, HAL.
    3. Jan Feld & Nicolás Salamanca & Daniel S. Hamermesh, 2016. "Endophilia or Exophobia: Beyond Discrimination," Economic Journal, Royal Economic Society, vol. 126(594), pages 1503-1527, August.
    4. 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.
    5. Dagnelie, Olivier & Mayda, Anna Maria & Maystadt, Jean-François, 2018. "The labor market integration of refugees to the United States: Do entrepreneurs in the network help?," CEPR Discussion Papers 12735, C.E.P.R. Discussion Papers.
    6. Bond, Timothy N. & Lehmann, Jee-Yeon K., 2018. "Prejudice and racial matches in employment," Labour Economics, Elsevier, vol. 51(C), pages 271-293.
    7. Laura Giuliano & Michael R Ransom, 2013. "Manager Ethnicity and Employment Segregation," ILR Review, Cornell University, ILR School, vol. 66(2), pages 346-379, April.
    8. Bernd Frick & Anica Rose, 2017. "Over the top: Team composition and performance in Himalayan expeditions," Working Papers Dissertations 24, Paderborn University, Faculty of Business Administration and Economics.
    9. Yuki, Kazuhiro, 2012. "Stereotypes, segregation, and ethnic inequality," MPRA Paper 39704, University Library of Munich, Germany.
    10. Tom Coupe & Olivier Gergaud & Abdul Noury, 2016. "Biases and Strategic Behavior in Performance Evaluation: The Case of the FIFA’s Best Soccer Player Award," Working Papers in Economics 16/24, University of Canterbury, Department of Economics and Finance.
    11. Jeffrey Penney & Erin Tolley & Elizabeth Goodyear-Grant, 2016. "Race and Gender Affinities in Voting: Experimental Evidence," Working Papers 1370, Queen's University, Department of Economics.
    12. KAWAGUCHI Daiji & OWAN Hideo & TAKAHASHI Kazuteru, 2016. "Biases in Subjective Performance Evaluation," Discussion papers 16059, Research Institute of Economy, Trade and Industry (RIETI).
    13. Amine Ouazad, 2014. "Assessed by a Teacher Like Me: Race and Teacher Assessments," Education Finance and Policy, MIT Press, vol. 9(3), pages 334-372, July.
    14. Colussi, Tommaso & Romano, Livio, 2016. "Is There a Preferential Treatment for Locals in the Labor Market? Evidence from Takeovers," IZA Discussion Papers 10418, Institute for the Study of Labor (IZA).
    15. Vera Rocha & Mirjam van Praag, 2016. "How do Entrepreneurial Bosses influence their Employees' Future Entrepreneurship Choices?," Tinbergen Institute Discussion Papers 16-110/VII, Tinbergen Institute.

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