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Manager Ethnicity and Employment Segregation

Author

Listed:
  • Giuliano, Laura

    () (University of Miami)

  • Ransom, Michael R.

    () (Brigham Young University)

Abstract

Using nine years of personnel records from a regional grocery store chain in the United States, this study examines the effect of manager ethnicity on the ethnic composition of employment at the firm's 73 stores. We estimate separate models with store fixed effects for several departments and job titles at each store. We first compare the rates at which Hispanic employees are hired under Hispanic and non-Hispanic, white managers, and then examine the effects of manager-employee ethnic differences on separations and on transfers between stores. We find significant effects of manager ethnicity on hiring patterns in the four job positions that are in small departments, but not in the two positions in larger departments. Manager-employee ethnic dissimilarity has no significant effects on transfers, and affects rates of employee separations in only one case.

Suggested Citation

  • Giuliano, Laura & Ransom, Michael R., 2011. "Manager Ethnicity and Employment Segregation," IZA Discussion Papers 5437, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp5437
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    References listed on IDEAS

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    1. 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.
    2. Judith K. Hellerstein & David Neumark, 2008. "Workplace Segregation in the United States: Race, Ethnicity, and Skill," The Review of Economics and Statistics, MIT Press, vol. 90(3), pages 459-477, August.
    3. 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.
    4. Kevin Lang, 1986. "A Language Theory of Discrimination," The Quarterly Journal of Economics, Oxford University Press, vol. 101(2), pages 363-382.
    5. H. J. Holzer, "undated". "Why do small establishments hire fewer blacks than large ones," Institute for Research on Poverty Discussion Papers 1119-97, University of Wisconsin Institute for Research on Poverty.
    6. Laura Giuliano & David I. Levine & Jonathan Leonard, 2011. "Racial Bias in the Manager-Employee Relationship: An Analysis of Quits, Dismissals, and Promotions at a Large Retail Firm," Journal of Human Resources, University of Wisconsin Press, vol. 46(1), pages 26-52.
    7. 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.
    8. 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;National Economic Association, vol. 23(1), pages 113-121, June.
    9. Olof Åslund & Lena Hensvik & Oskar Nordström Skans, 2014. "Seeking Similarity: How Immigrants and Natives Manage in the Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 32(3), pages 405-441.
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    Cited by:

    1. Zenou, Yves, 2011. "Explaining the Black/White Employment Gap: The Role of Weak Ties," CEPR Discussion Papers 8582, C.E.P.R. Discussion Papers.

    More about this item

    Keywords

    managerial discretion; segregation; ethnicity;

    JEL classification:

    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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