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Manager Race and the Race of New Hires

  • 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 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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File URL: http://moya.bus.miami.edu/~lgiuliano/Hires.pdf
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Paper provided by University of Miami, Department of Economics in its series Working Papers with number 0722.

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Length: 47 pages
Date of creation: Sep 2006
Date of revision:
Publication status: Forthcoming: Under Review, Journal of Labor Economics
Handle: RePEc:mia:wpaper:0722
Contact details of provider: Postal: P.O. Box 248126, Coral Gables, FL 33124-6550
Phone: (305) 284-5540
Fax: (305) 284-2985
Web page: http://www.bus.miami.edu/faculty-and-research/academic-departments/economics/index.html

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  1. 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.
  2. Chamberlain, Gary, 1980. "Analysis of Covariance with Qualitative Data," Review of Economic Studies, Wiley Blackwell, vol. 47(1), pages 225-38, January.
  3. Judith Hellerstein & David Neumark, 2005. "Workplace Segregation in the United States: Race, Ethnicity, and Skill," NBER Working Papers 11599, National Bureau of Economic Research, Inc.
  4. 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.
  5. Patrick Bayer & Stephen Ross & Giorgio Topa, 2005. "Place of Work and Place of Residence: Informal Hiring Networks and Labor Market Outcomes," NBER Working Papers 11019, National Bureau of Economic Research, Inc.
  6. 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.
  7. 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.
  8. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162.
  9. Patrick Bayer & Stephen L. Ross & Giorgio Topa, 2005. "Place of Work and Place of Residence: Informal Hiring Networks and Labor Market Outcomes," Working Papers 927, Economic Growth Center, Yale University.
  10. 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.
  11. Lang, Kevin, 1986. "A Language Theory of Discrimination," The Quarterly Journal of Economics, MIT Press, vol. 101(2), pages 363-82, May.
  12. D. McFadden & J. Hausman, 1981. "Specification Tests for the Multinominal Logit Model," Working papers 292, Massachusetts Institute of Technology (MIT), Department of Economics.
  13. 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.
  14. 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.
  15. 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.
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