Barriers to a Diverse Workplace
Paper Session
Sunday, Jan. 9, 2022 12:15 PM - 2:15 PM (EST)
- Chair: Andrea Weber, Central European University
Asymmetric Peer Effects: How White Peers Shape Black Turnover
Abstract
This study examines how working with white co-workers affects turnover rates for black employees in a large professional services firm. Black employees are 10 percentage points more likely to turnover within two years relative to similar white employees in the same office, whose average turnover rate is 21%. Drawing on conditional random assignment to their initial project for over 9,000 newly hired employees in the U.S., we find that a one standard deviation (20%) decrease in the percentage of white co-workers in the initial project decreases turnover for black women (but not black men, other non-white, or white employees) by 10 percentage points. We further collect performance review and talent surveys of employees to understand the mechanism behind this result. Early results suggest that when black women are assigned to initial projects with more white co-workers, they are less satisfied at work and receive more negative performance evaluations: evaluators are more likely to identify them as “at risk of low performance” and are less willing to “always want the [given employee] on their team.”. We are currently collecting information on network formation and promotion at the firm to understand how the initial project assignment impacts career evolution at the firm.Homophily by Gender in Advice Seeking
Abstract
This paper investigates homophily by gender in advice seeking. Using administrative data from an online college student mentoring platform, we document that female students are 28 percent more likely to reach out to female mentors relative to male students, conditional on various observable characteristics. Despite this sorting, female mentors respond less frequently and give shorter responses than male mentors, calling into question whether the benefits of homophily outweigh its costs. We estimate college students’ preferences for mentor characteristics using a hypothetical choice preference elicitation in a setting that incentivizes truthful responses. The preferences from this survey confirm that female students are willing to sacrifice mentor quality and availability in order to access a female mentor. Furthermore, we find that most female students do not derive gender-specific benefits from female mentors. Instead, female students statistically discriminate when selecting mentors, using mentor gender as a proxy for other desirable mentor characteristics.Discussant(s)
Andrea Weber
,
Central European University
Christine L. Exley
,
Harvard Business School
Corinne Low
,
University of Pennsylvania
JEL Classifications
- J1 - Demographic Economics
- J7 - Labor Discrimination