Category: Labor Market Discrimination

Discrimination in the Hiring Process Based on Racial Differences

By Jonas Wachman Goncalves and Ryan Carey

Summary

Discrimination in the hiring process has been a concerning issue, surrounding various forms such as racial, gender, age, and ethnic bias. Despite having some advancements in encouraging diversity and inclusion, many individuals continue to face unequal treatment based on their race. Racial minorities and individuals from marginalized communities often encounter barriers to equal opportunities, fair pay, and career advancement. Discrimination can manifest in biases, unequal representation in leadership roles, and even in hiring processes. Addressing workplace discrimination requires efforts from organizations to promote inclusive environments, raise awareness, and implement anti-discrimination policies.

Depiction

Evidence

Cydney’s (2021) article explores how white evaluators tend to favor white candidates for high-status roles and black candidates for lower-status roles, maintaining a hierarchical structure. The study investigates three factors influencing this bias: role status, representativeness, and hierarchy profiling. Through three experiments, white evaluators assessed the suitability of white and black candidates for different roles. Predictably, the study found that evaluators prefer white male applicants for high-status roles, while black applicants were seen as more suitable for lower-status roles.

In another article, Identical applicant but different outcomes: The impact of gender versus race salience in hiring. Group Processes & Intergroup Relations, dives into the impact that race and gender have on the hiring decisions of an Asian American woman in STEM fields. The authors, Rattan, A., Steele, J., & Ambady, N. (2019) created three different studies using student samples. In these studies, the authors makes either the race or gender of the applicant apparent when they apply to jobs that are typically worked by men. When the Asian woman’s race was made notable with her application, male evaluators were more likely to hire and offer higher pay in science and technology-related fields. However, when just gender was made apparent in the application the opposite was seen. In both articles, we see immense examples of racial bias in the hiring process.

Another instance of hiring discrimination is seen in a study done by Bertrand in (2004) where researchers conducted an experiment assessing racial bias in job hiring. They sent out fake resumes in response to job ads in Boston and Chicago, altering the names of the applicants to sound either African American or White. The findings demonstrated significant discrimination against resumes with African American names, which received 50% fewer interview callbacks than those with White-sounding names.

Consequences

There are many consequences that arise from biased hiring processes. Firstly, it continues the systemic racial hierarchy that white men have controlled since the start of slavery. If people of diverse backgrounds, race, or even gender are not given the same opportunity the system will never be broken. As well as diversity not being introduced into places of influence. Additionally, implicit bias is another concept holding back equality in the hiring process. Implicit biased does and can lead to employers making unfair and discriminatory decisions. It also brings up the issue of hiring someone white who is less qualified than someone of a different race.

Policy Intervetntion

By promoting diversity, equity, and inclusion, workplaces can become more supportive and respectful of the diversification of human experiences. Ongoing education and systemic changes are crucial to creating workplaces that truly embody the principles of equality and fairness for all races. A policy recommendation that would help create an inclusive workforce would be to create a blind hiring process. Suggesting that to minimize bias, employers should remove names, race, gender, and other identifying information from resumes in the initial screening process. By creating a blind hiring process there would be limited bias in the hiring process. The hiring of someone would come down to what they have accomplished on their resume.

Questions

  1. Why after so many years of trying to end racial bias do we see that top corporate positions are predominantly run by white men?
  2. How can we create policies and changes that will help break this cycle of underrepresentation?  

Sources

Rattan, A., Steele, J., & Ambady, N. (2019). Identical applicant but different outcomes: The impact of gender versus race salience in hiring. Group Processes & Intergroup Relations, 22(1), 80-97.

Cydney H. Dupree, Brittany Torrez (2021). Hierarchy profiling: How and why a job’s perceived impact on inequality affects racial hiring evaluations, Journal of Experimental Social Psychology, Volume 96.

Bertrand, M., & Mullainathan, S. (2004). Are Emily and Greg more employable than Lakisha and Jamal? A field experiment on labor market discrimination. American Economic Review, 94(4), 991-1013.

Gender Discrimination in Firing and Workplace Punishment

by Ellery Campbell and Ali Gall

Overview

Women experience discrimination in the workplace in a number of ways, such as in hiring, in pay, and in cases of harassment. However, one type of gender discrimination that does not receive as much attention is the discrimination in firing and workplace punishment that women experience in comparison to men. Research across a number of occupations show that women are more likely to be fired than men. In the financial advisory industry, women were found to be 20% more likely to be fired than men following an instance of misconduct (Egan et al., 2022).

The Work From Home Gender Gap - EWI Works

Women are also disproportionately punished for poor firm performance, as female executives in the S&P 1500 firms were found to be 15% more likely than men to be fired when there is a decline in firm performance (Landsman, 2019). Additionally, female CEOs are 45% more likely to be dismissed than male CEOs, and the likelihood of being dismissed decreases for male CEOs, but not for female CEOs, when the firm is performing well (Gupta et al., 2020). These findings on gender discrimination in firing and the handling of misconduct display that women are consistently punished based on gender biases rather than on their actual ability.

Policy Recommendations

Policy intervention could be used to ensure that firing, especially in the case of a CEO, is warranted. If a CEO is to be fired, a policy could require that this decision is evaluated by an impartial party who could determine if the firing is purely performance based or if it may be the result of gender discrimination, as we know that female CEOs are more likely to be fired than male CEOs. A summary of the case without any information relating to the gender of the CEO (with just firm performance and crucial decisions made included) could be given to a small group of people from multiple genders, who independently will evaluate the case, and conclude whether firing the person is the appropriate outcome. Also, policy could require that firms implement mandatory anti-discrimination training in hopes of reducing gender discrimination and creating a more inclusive workplace.

Consequences Without Intervention

Gender differences in the average working week | Careersmart

Without implementing this policy intervention, the problems of the glass ceiling and the glass cliff will remain for women in the workforce. The glass ceiling refers to the barriers that prevent women from advancing to positions of authority in the workplace, and the glass cliff refers to the high likelihood that women will fall out of these positions of authority once they enter them (Sabharwal, 2015). These problems imply that even as we see progress in the number of women in leadership positions in the workplace, they still face additional complications when it comes to maintaining those positions. Thus, it is imperative that policies are implemented that prevent women from being punished unfairly and taking the blame for poor firm performance because of their gender.

Research Questions

One research question that emerges is how does the gender of the person handling the firing relate to how many people of each gender are fired? For example, if a man decides to fire someone, are they more likely to fire women or men? If a woman fires someone, is it more likely that the person fired is a man or woman? Another research question is which fields have the greatest and also the least gender discrimination in firing and punishment of misconduct? Is there a reason why certain fields see more gender discrimination in firing and punishment while others see less? Future research could also look into whether the gender imbalances in firing and misconduct punishment differ by region? There may be states that have higher rates of gender discrimination, and future research could look into why that is if the results show that some places do see greater imbalances in this gender discrimination. Finally, future research could look into other characteristics that may cause people to be fired and punished for misconduct more often. For instance, is this discrimination worse for women of color and women in other minority groups?

Infographic

References

Egan, M., Matvos, G., & Seru, A. (2022). When Harry Fired Sally: The Double Standard in Punishing Misconduct. Journal of Political Economy, 130(5), 1184-1248.

Gupta, V., Mortal, S., Silveri, S., Sun, M., & Turban, D. (2020). You’re Fired! Gender Disparities in CEO Dismissal. Journal of Management, 46(4), 560-582.

Landsman, R. (2019). Gender Differences in Executive Departure. Working paper.

Sabharwal, S. (2015). From Glass Ceiling to Glass Cliff: Women in Senior Executive Service

“Gender Differences in the Average Working Week.” Careersmart, careersmart.org.uk/occupations/equality/gender-differences-average-working-week. Accessed 7 Dec. 2023.

“The Work from Home Gender Gap.” EWI Works, June 9 2023, ewiworks.com/the-work-from-home-gender-gap/.

Labor Market Discrimination

By Nikolas DeAngelo & Ada Sun

Research Questions:

How does gender discrimination impact employment opportunities and career advancements in various labor markets?

How do societal stereotypes influence hiring practices, career advancement, and overall workplace experiences for individuals of different genders?



Summary of the Issue at Hand:

The broad topic of labor market discrimination can be used as an umbrella term that contains the subsection of gendered labor market discrimination. Upon looking at research, women are typically exploited more than men (Goff, 2016). This exploitation is defined as the wage difference between males and females for the same level of productivity (Goff, 2016). Research has also shown that women have repeatedly faced discrimination upon disclosing the number of children they have (White, 2001). More research further backs up the idea that women reported feeling discriminated against in labor markets (Neumark, 1995). The results show that based on a self-reported measure, 88.9% of workers felt discriminated against with 69.9% of those being women (Neumark, 1995). These were women who felt discriminated against based on factors not only including their wages (Neumark, 1995). We want to outline that this discrimination they feel is in the form of sexual harassment, lower benefits, and failure to get desirable promotions or assignments. Another piece of research that we look at regarding discrimination examines discrimination-based case files against companies. They find that it is also important to note that a lot of women do not report the discrimination they face (Bobbitt-Zecher, 2011). One of the biggest findings in these narrative cases was that 44% of women were descriptively discriminated against (Bobbitt-Zecher, 2011). This means that they were discriminated against for their assumed characteristics and incompatible traits relating to the job. We see from this type of discrimination that women are seen as women first and workers second. Employers will typically assume that a woman is significantly less attached to the job at hand because of children that may be in the picture now or in the future. This type of descriptive discrimination also looks at the issue of employers seeing women as emotional and some even go as far as using derogatory terms. Although we only reference a slim number of gender discrimination within labor markets, we attempt to reach a broader implication that brings the large amounts of discrimination to the attention of the reader.


Policy Intervention:

Although policy recommendations are tricky to implement as employers will never say that there is discrimination within their company, we provide a few recommendations. The first is intervention with more general anti-discrimination laws. As stated in the summary of the issue at hand, there is clear discrimination based on sex within the labor market both when hiring and once working on-site. Policymakers must be constantly looking for ways to decrease discrimination through different, effective laws while also not forgetting pre-existing anti-discrimination laws. Another large portion of discrimination that is mentioned is the issue around gender stereotypes of women not being attached to the job due to children or home life. A suggestion that would help increase labor market attachment and eliminate the unknowing on the employer’s end as to how attached a female employee will be, is through providing more childcare compensation (White, 2001). With increased support for childcare, it will allow women who feel the pressure to put their kids above their work, at ease. They can go to work knowing that the company they work for sees value in them as workers and is willing to understand that there are family needs when it comes to a work-life balance not only on the factor of wages but also total compensation.



What will happen without Intervention?

Without intervention, we see conditions of large discrimination climbing. With the ideas previously mentioned in mind, there are already so many women who feel discriminated against in their workplaces. There are large percentages of female workers who are already reporting cases of discrimination. The author also mentions that there are a lot of workers who do not report discrimination (Bobbitt-Zecher, 2011). If we continue to let employers and employees discriminate based on gender and do not see policy intervention, we will see the number of reported discrimination cases increase. This could lead to a decrease in women’s wages and an increase in their overall economic insecurity. We should take measures to prevent this discrimination and ensure that all workers are treated fairly.


Infographic:


References:

Bobbitt-Zeher, D. (2011). Gender Discrimination at Work: Connecting Gender Stereotypes, Institutional Policies, and Gender Composition of Workplace. Gender & Society, 25(6), 764–786. https://doi.org/10.1177/0891243211424741

Goff, S. C. & Department of Philosophy, Florida State University. (2016). How to Trade Fairly in an Unjust Society: The Problem of Gender Discrimination in the Labor Market. Social Theory and Practice, 42(3), 555–580. https://doi.org/10.5840/soctheorpract201642316 

Neumark, D., & McLennan, M. (1995). Sex Discrimination and Women’s Labor Market Outcomes. The Journal of Human Resources, 30(4), 713–740. https://doi.org/10.2307/146229

White, L. A. (2001). Child care, women’s labour market participation and labour market policy effectiveness in Canada. Canadian Public Policy, 27(4), 385-405. Retrieved from https://login.ezproxy.trincoll.edu/login?url=https://www.proquest.com/scholarly-journals/child-care-womens-labour-market-participation/docview/56094525/se-2Retrieved from https://login.ezproxy.trincoll.edu/login?url=https://www.proquest.com/scholarly-journals/child-care-womens-labour-market-participation/docview/56094525/se-2

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