(From: http://www.nber.org/digest/sep03/w9873.html)
Job applicants with white names needed to send about 10 resumes to get one callback; those with African-American names needed to send around 15 resumes to get one callback.”
A job applicant with a name that sounds like it might belong to an African-American – say, Lakisha Washington or Jamal Jones – can find it harder to get a job. Despite laws against discrimination, affirmative action, a degree of employer enlightenment, and the desire by some businesses to enhance profits by hiring those most qualified regardless of race, African-Americans are twice as likely as whites to be unemployed and they earn nearly 25 percent less when they are employed.
Now a “field experiment” by NBER Faculty Research Fellows Marianne Bertrand and Sendhil Mullainathan measures this discrimination in a novel way. In response to help-wanted ads in Chicago and Boston newspapers, they sent resumes with either African-American- or white-sounding names and then measured the number of callbacks each resume received for interviews. Thus, they experimentally manipulated perception of race via the name on the resume. Half of the applicants were assigned African-American names that are “remarkably common” in the black population, the other half white sounding names, such as Emily Walsh or Greg Baker.
To see how the credentials of job applicants affect discrimination, the authors varied the quality of the resumes they used in response to a given ad. Higher quality applicants were given a little more labor market experience on average and fewer holes in their employment history. They were also portrayed as more likely to have an email address, to have completed some certification degree, to possess foreign language skills, or to have been awarded some honors.
In total, the authors responded to more than 1,300 employment ads in the sales, administrative support, clerical, and customer services job categories, sending out nearly 5,000 resumes. The ads covered a large spectrum of job quality, from cashier work at retail establishments and clerical work in a mailroom to office and sales management positions.
The results indicate large racial differences in callback rates to a phone line with a voice mailbox attached and a message recorded by someone of the appropriate race and gender. Job applicants with white names needed to send about 10 resumes to get one callback; those with African-American names needed to send around 15 resumes to get one callback. This would suggest either employer prejudice or employer perception that race signals lower productivity.
The 50 percent gap in callback rates is statistically very significant, Bertrand and Mullainathan note in Are Emily and Greg More Employable than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination (NBER Working Paper No. 9873). It indicates that a white name yields as many more callbacks as an additional eight years of experience. Race, the authors add, also affects the reward to having a better resume. Whites with higher quality resumes received 30 percent more callbacks than whites with lower quality resumes. But the positive impact of a better resume for those with Africa-American names was much smaller.
“While one may have expected that improved credentials may alleviate employers’ fear that African-American applicants are deficient in some unobservable skills, this is not the case in our data,” the authors write. “Discrimination therefore appears to bite twice, making it harder not only for African-Americans to find a job but also to improve their employability.”
From a policy standpoint, this aspect of the findings suggests that training programs alone may not be enough to alleviate the barriers raised by discrimination, the authors write. “If African-Americans recognize how employers reward their skills, they may be rationally more reluctant than whites to even participate in these programs.”
The experiment, conducted between July 2001 and January 2002, reveals several other aspects of discrimination. If the fictitious resume indicates that the applicant lives in a wealthier, or more educated, or more-white neighborhood, the callback rate rises. Interestingly, this effect does not differ by race. Indeed, if ghettos and bad neighborhoods are particularly stigmatizing for African-Americans, one might have expected them to be helped more than whites by having a “good” address.
Further, discrimination levels are statistically uniform across all the occupation and industry categories covered in the experiment. Federal contractors, sometimes regarded as more severely constrained by affirmative action laws, do not discriminate less. Neither do larger employers, or employers who explicitly state that they are “Equal Opportunity Employer” in their ads.
Another finding is that employers located in more African-American neighborhoods in Chicago are slightly less likely to discriminate. There is also little evidence that social background of applicants – suggested by the names used on resumes – drives the extent of discrimination.
The advantage of their study, the authors note, is that it relies on resumes, not actual people applying for jobs, to test discrimination. A race is randomly assigned to each resume. Any differences in response are due solely to the race manipulation and not to other characteristics of a real person. Also, the study has a large sample size, compared to tests of discrimination with real applicants.
One weakness of the study is that it simply measures callbacks for interviews, not whether an applicant gets the job and what the wage for a successful applicant would be. So the results cannot be translated into hiring rates or earnings. Another problem of the study is that newspaper ads represent only one channel for job search.
— David R. Francis
