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

  • Laura Giuliano


    (Department of Economics, University of Miami)

  • David I. Levine


    (Haas School of Business, University of California at Berkeley)

  • Jonathon Leonard


    (Haas School of Business, University of California at Berkeley)

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.

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Paper provided by University of Miami, Department of Economics in its series Working Papers with number 0721.

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Length: 42 pages
Date of creation: Jul 2006
Date of revision:
Publication status: Forthcoming: Under Review, Journal of Human Resources
Handle: RePEc:mia:wpaper:0721
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  1. 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.
  2. Price, Joseph & Wolfers, Justin, 2007. "Racial Discrimination Among NBA Referees," CEPR Discussion Papers 6369, C.E.P.R. Discussion Papers.
  3. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162, December.
  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. 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.
  6. Laura Giuliano & David I. Levine & Jonathon Leonard, 2006. "Manager Race and the Race of New Hires," Working Papers 0722, University of Miami, Department of Economics.
  7. 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.
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