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  5. Impacts of Diversity, Equity, and Inclusion Initiatives
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Impacts of Diversity, Equity, and Inclusion Initiatives

Paper Session

Friday, Jan. 3, 2025 10:15 AM - 12:15 PM (PST)

Hilton San Francisco Union Square, Continental Ballroom 7&8
Hosted By: American Economic Association
  • Chair: Yana van der Meulen Rodgers, Rutgers University

The Long-Run Impacts of Mentoring Underrepresented Minority Groups in Economics

Francisca Antman
,
University of Colorado-Boulder
Sheng Qu
,
University of Colorado-Boulder
Bruce A. Weinberg
,
Ohio State University
Trevon Logan
,
Ohio State University

Abstract

In recent years, mentoring programs have surged in popularity as institutions and organizations attempt to address persistent disparities in the population and workforce. Despite the recent attention, much remains to be learned about the efficacy of mentoring programs in the long-run. In this paper, we conduct a long-term evaluation of one of the longest running professional mentoring programs for underrepresented groups in economics, the American Economic Association Mentoring Program (AEAMP). The AEAMP was established in the mid-1990s by the American Economic Association Committee on the Status of Minority Groups in the Economics Profession (CSMGEP) to address the underrepresentation of racial and ethnic minorities among those entering and/or completing doctorate degrees in economics. The program matches economics Ph.D. students and new doctorates from underrepresented minority groups with professional economists who serve as mentors in the field. It also facilitates travel to attend conferences and meet with mentors and provides support for research activities. We explore the long-run impacts of the program by comparing the professional outcomes of individuals who participated in the program with individuals from the same cohort of underrepresented minority groups who did not participate in the program. We address possible selection bias by controlling for factors such as undergraduate and graduate institutions. As the first study to document long-run impacts of the program, our results shed light on the potential for nascent mentoring programs to address persistent racial and ethnic disparities in the future.

Reputational Effects of Diversity Scholarships in the Labor Market

Janet Xu
,
Stanford University

Abstract

Many universities and companies use diversity scholarships and awards for impression management and recruiting purposes. In contrast to race-conscious affirmative action measures, these contemporary diversity initiatives emphasize merit and conceptualize contributions to diversity in a broad, colorblind manner. Diversity initiatives can enhance organizational status and reputation, but less is known about how these signals are perceived when they are associated with individuals. This article investigates the reputational effects of diversity scholarships for male college graduates seeking entry-level jobs. Using a national audit study (N = 3,456), I compare the rate at which employers call back applicants with diversity merit scholarships, applicants with merit scholarships that do not mention diversity, and applicants without scholarships. I also examine how award signals differ when applicant names have Black racial cues versus White racial cues. I find that diversity and non-diversity merit scholarships both increase callback likelihood for putatively White applicants, but putatively Black applicants receive no reputational benefits from either type of award. Accompanying survey experiments probe possible mechanisms, such as the perceived selectivity of diversity awards and racial status threat. Overall, results suggest that uneven reputational gains from symbolic awards can exacerbate existing racial discrimination, and that status-based cumulative advantage processes may differ for demographic groups.

Gender Quotas for Top Executives

Amalia Miller
,
University of Virginia
David Matsa
,
Northwestern University

Abstract

After gender quotas for supervisory boards failed to sufficiently increase female representation among top corporate executives, Germany adopted a law in August 2021 requiring major public companies to have at least one female top executive. This expansion in the scope of affirmative action in Europe stands in contrast to its constriction in the United States. Using data on German and other European firms with dual board structures from 2016-2024, we examine the initial effects of the quota. We find that the quota significantly increased female presence among top executives, with firms drawing new female top executives from within and outside of their senior leadership ranks and professional networks. New female top executives were mainly recruited into HR and less common board roles. Analysis of daily stock market returns shows a significant negative response to initial calls for the quota that reversed as the law was developed and codified. Despite the induced changes in leadership, we find no discernable effects of the quota on firms’ operating profit or market valuation after its adoption.

Enabling Employment: The Effect of DEI Initiatives on Disability Employment Outcomes

Lawrence Houston
,
University of Houston
Douglas Kruse
,
Rutgers University

Abstract

There has been much discussion about the potential value of employer practices to enhance employment opportunities for people with disabilities, but little hard evidence. We use unbalanced panel data from 237 firms over the 2019-2023 period to examine how disability-related DEI practices and initiatives affect disability employment outcomes, drawing on a detailed annual survey filled out by large U.S. companies in the National Organization on Disability. The practices and initiatives include diversity plans and strategies, diversity promotion efforts by senior leaders and others, hiring strategies, accommodation and accessibility policies, mentoring, and diversity training for management and HR staff. The outcomes include applications, hiring, promotions, retention, and representation in management and professional jobs by disability status. The panel data allow analysis of pre/post and lagged effects. Several of these companies are also participating in employee-level surveys, enabling us to examine how organization-reported disability practices relate to employee-level attitudes and behaviors for employees both with and without disabilities.

Discussant(s)
Ebonya Washington
,
Columbia University
Jose Fernandez
,
University of Louisville
April Klein
,
New York University
Cici McNamara
,
Georgia Institute of Technology
JEL Classifications
  • J1 - Demographic Economics
  • J7 - Labor Discrimination