Findings

Demographic Power

Kevin Lewis

February 10, 2022

Race and the Mismeasure of School Quality
Joshua Angrist et al.
MIT Working Paper, January 2022

Abstract:
In large urban districts, schools enrolling more white students tend to have higher school performance ratings. We use an instrumental variables strategy leveraging centralized school assignment to identify the drivers of the correlation between racial make-up and ratings. Estimates from Denver and New York City suggest the relationship between widely-reported school performance ratings and white enrollment shares reflects selection bias rather than causal school value-added. In fact, value-added in these two cities is essentially unrelated to white enrollment shares. A simple regression adjustment is shown to yield school ratings that are uncorrelated with race, while predicting causal value-added as well or better than the corresponding unadjusted measures. 


Gender stereotypes, class, and race in attributions of blame for women's gender-linked mistreatment
Jessica Kiebler & Abigail Stewart
Analyses of Social Issues and Public Policy, forthcoming

Abstract:
In two survey experiments, three types of gender-based mistreatment, social class and race of the target, and gender-linked stereotypes of respectability (sexualization and irresponsibility) were assessed in relation to victim blame attribution. U.S. participants (Study 1: N = 416; Study 2: N = 300) read a vignette about a woman described as working- or middle-class, as Black or white, and as having experienced sexual assault, sexual harassment, or incivility in the workplace. Based on the ambiguity of the intent of the perpetrator, we anticipated that incivility would result in more victim blame; this was confirmed. Additionally, in both studies, perceived victim respectability mediated the relationship between class and blame. The working-class woman was seen as less respectable compared to the middle-class woman, and this was associated with greater blame attribution for mistreatment. Results confirm the importance of more attention to social class in research on perceptions of women exposed to mistreatment, as well as interventions to mitigate victim-blaming. 


He's Overqualified, She's Highly Committed: Qualification Signals and Gendered Assumptions About Job Candidate Commitment
Elizabeth Lauren Campbell & Oliver Hahl
Organization Science, forthcoming

Abstract:
Evidence suggests that possessing more qualifications than is necessary for a job (i.e., overqualification) negatively impacts job candidates' outcomes. However, unfair discounting of women's qualifications and negative assumptions about women's career commitment imply that female candidates must be overqualified to achieve the same outcomes as male candidates. Across two studies, experimental and qualitative data provide converging evidence in support of this assertion, showing that gender differences in how overqualification impacts hiring outcomes are due to the type of commitment - firm or career - that is most salient during evaluations. Overqualified men are perceived to be less committed to the prospective firm, and less likely to be hired as a result, than sufficiently qualified men. But overqualified women are perceived to be more committed to their careers than qualified women because overqualification helps overcome negative assumptions that are made about women's career commitment. Overqualification also does not decrease perceptions of women's firm commitment like it does for men: supplemental qualitative and experimental evidence reveals that hiring managers rationalize women's overqualification in a way they cannot for men by relying on gender stereotypes about communality and assumptions about candidates' experiences with gender discrimination at prior firms. These findings suggest that female candidates must demonstrate their commitment along two dimensions (firm and career), but male candidates need only demonstrate their commitment along one dimension (firm). Taken together, differences in how overqualification impacts male versus female candidates' outcomes are evidence of gender inequality in hiring processes, operating through gendered assumptions about commitment.


Equilibrium Unemployment: The Role of Discrimination
Juan Carlos Cordoba, Anni Isojärvi & Haoran Li
Federal Reserve Working Paper, December 2021

Abstract:
U.S. labor markets are increasingly diverse and persistently unequal between genders, races and ethnicities, skill levels, and age groups. We use a structural model to decompose the observed differences in labor market outcomes across demographic groups in terms of underlying wedges in fundamentals. Of particular interest is the potential role of discrimination, either taste-based or statistical. Our model is a version of the Diamond-Mortensen-Pissarides model extended to include a life cycle, learning by doing, a nonparticipation state, and informational frictions. The model exhibits group-specific wedges in initial human capital, returns to experience, matching efficiencies, and job separation rates. We use the model to reverse engineer group-specific wedges that we then feed back into the model to assess the fraction of various disparities they account for. Applying this methodology to 1998-2018 U.S. data, we show that differences in initial human capital, returns to experience, and job separation rates account for most of the demographic disparities; wedges in matching efficiencies play a secondary role. Our results suggest a minor aggregate impact of taste-based discrimination in hiring and an important role for statistical discrimination affecting particularly female groups and Black males. Our approach is macro, structural, unified, and comprehensive. 


Female CEOs and the compensation of other top managers
Cristian Dezső, Yixuan Li & David Gaddis Ross
Journal of Applied Psychology, forthcoming

Abstract:
We study the implications of having a female chief executive officer (CEO) for the compensation levels of other top managers of a firm. Extant theoretical perspectives, such as social identity theory, gendered notions of firm status, and loss of diversity benefits, among others, make competing predictions about the effect of having a female, as opposed to a male, CEO: (a) that only female top managers may earn more, (b) that both female and male top managers may earn less, and (c) that only female top managers may earn less. Using over 20 years of data on the top management teams (TMTs) of the largest 1,500 U.S. firms, we find that women (but not men) in top management earn significantly less with a female CEO than what they would have earned with a male CEO in a given year within a particular firm. We theorize that these results are consistent with the argument that a female top manager confers diversity benefits on her firm, which become redundant when there is a female CEO. Thus, the focal female top manager is paid less with a female CEO than what she would have earned with a male CEO. Our post-hoc test related to the effect of the percentage of female members on the TMT provides further empirical evidence for the diversity benefits perspective. This study contributes to research on TMTs, gender, and compensation and should inspire further work investigating the psychological mechanisms through which CEO gender influences TMT compensation. 


Schools as a Relatively Standardizing Institution: The Case of Gender Gaps in Cognitive Skills
Douglas Downey, Megan Kuhfeld & Margriet van Hek
Sociology of Education, forthcoming

Abstract:
Growing evidence suggests that contrary to popular belief, schools mostly do not generate achievement gaps in cognitive skills but, rather, reflect the inequalities that already exist. In the case of socioeconomic status, exposure to school often reduces gaps. Surprisingly little is known, however, about whether this pattern extends to gender gaps in cognitive skills. We compare how gender gaps in math and reading change when children are in school versus out (in the summer) among over 900,000 U.S. children. We find that girls learn faster than boys when school is out (in both reading and math), but this advantage is completely eliminated when school is in session. Compared to the family environment, schools act as a relatively standardizing institution, producing more similar gendered patterns in learning. 


The Role of Resources in the Success or Failure of Diverse Teams: Resource Scarcity Activates Negative Performance-Detracting Resource Dynamics in Social Category Diverse Teams
Siyu Yu & Lindred Greer
Organization Science, forthcoming

Abstract:
Increasing the social category diversity of work teams is top of mind for many organizations. However, such efforts may not always be sufficiently resourced, given the numerous resource demands facing organizations. In this paper, we offer a novel take on the relationship between social category diversity and team performance, seeking to understand the role resources may play in both altering and explaining the performance dynamics of diverse teams. Specifically, our resource framework explains how the effects of social category diversity on team performance can be explained by intrateam resource cognitions and behaviors and are dependent on team resource availability. We propose that in the face of scarcity in a focal resource (i.e., budget), diverse (but not homogenous) teams generalize this scarcity perception to fear that all resources (i.e., staff, time, etc.) are scarce, prompting performance-detracting power struggles over resources within the team. We find support for our model in three multimethod team-level studies, including two laboratory studies of interacting teams and a field study of work teams in research and development firms. Our resource framework provides a new lens to study the success or failure of diverse teams by illuminating a previously overlooked danger in diverse teams (negative resource cognitions (scarcity spillover bias) and behaviors (intrateam power struggles)), which offers enhanced explanatory power over prior explanations. This resource framework for the study of team diversity also yields insight into how to remove the roadblocks that may occur in diverse teams, highlighting the necessity of resource sufficiency for the success of diverse teams. 


Corporate Discrimination, Competition, and Shareholder Wealth
Casey Dougal, Thomas Griffin & Irena Hutton
Florida State University Working Paper, November 2021

Abstract:
We study novel data on the universe of employment discrimination lawsuits filed in federal court against U.S. public corporations between 1992 and 2018. Shareholder value drops by $30 million, on average, in the three days surrounding a discrimination lawsuit filing. However, we find no evidence that discrimination rates are related to product market competition, financial resources, governance, or CEO turnover. Instead, workplace discrimination is highly persistent and correlates with slow-moving proxies of firm culture, such as headquarter location. These results suggest that corporate discrimination is largely determined by the beliefs and preferences of employees, rather than a firm's economic environment. 


Gender, Credentials and M&A
Tracey George, Albert Yoon & Mitu Gulati
University of Virginia Working Paper, February 2022

Abstract:
For the past several decades, women have made up roughly half of law school classes and the ranks of entering law firm associates. Attrition between entry to law firms and partnership results in women comprising 20 and 25 percent of partners. But is there yet more attrition to the top of the partnership pyramid? Analyzing the past decade of data on publicly-filed M&A deals and detailed biographical information of M&A lawyers, we find that women make up fewer than 10 percent of deal leaders. When we look at the factors that determine who becomes a deal leader, we find that credentials - both educational and professional - matter. But they matter more for women. And one credential - attending a top law school - seems to matter a lot. Using conversations with senior lawyers, we try to get answers for why. 


What counts as discrimination? How principles of merit shape fairness of demographic decisions
Teodora Tomova Shakur & Taylor Phillips
Journal of Personality and Social Psychology, forthcoming

Abstract:
Demographic attributes (e.g., age, disability, race) frequently affect people's decisions. We provide a novel perspective as to why such discrimination persists: Meritocratic principles lead people to perceive some demographic attributes as fair to use, rather than as discriminatory. Specifically, we theorize that meritocracy requires that controllable and relevant inputs determine outcomes; as a result, perceived controllability and relevance affect the degree to which demographic attributes are perceived as fair to use. Moreover, we suggest perceived relevance outweighs controllability, such that even uncontrollable attributes can be perceived as fair criteria if perceived to be outcome relevant. In two qualitative studies, we probed how people think about demographic attributes used in selection (Studies 1a-b). We find that people refer to controllability and relevance dimensions to justify their perceptions. Further, people largely associate uncontrollable, irrelevant attributes with discrimination (race, sex), neglecting attributes they perceive as controllable and/or relevant (disability, caregiving status). Next, three surveys (Studies 2a-c) support our theorizing that perceived relevance impacts fairness perceptions more strongly than perceived controllability. In three experiments (Studies 3a-c), we provide causal evidence that relevance and controllability shape perceived fairness, which in turn affects selection behaviors, including seeking information regarding demographic attributes during hiring. Finally, Study 4 demonstrates downstream consequences: Perceived controllability, relevance, and use of demographic attributes together impact employees' psychological safety and job satisfaction. Overall, we find that principles of merit lead people to believe that even some legally protected demographic attributes are fair to use, allowing discrimination to persist. 


The Impact of Suspension Reforms on Discipline Outcomes: Evidence From California High Schools
Rui Wang
AERA Open, January 2022

Abstract:
Minority students are suspended at a disproportionately higher rate compared with others. To reduce racial suspension gaps, four California school districts banned schools from suspending students for willful defiance, a category consisting of relatively minor disruptive offenses. I evaluate the impact of these policies on high school student discipline outcomes using a difference-in-differences strategy that exploits the temporal variation in the enactment of these policies across school districts. The results suggest that while these policies decreased willful defiance out-of-school suspension rates by around 69%, they did not reduce overall out-of-school suspension rates. In fact, the policies significantly increased out-of-school suspension rates among Black students, particularly in schools with a small share of Black teachers. Taken together, the results suggest that the willful defiance suspension bans failed to address implicit and explicit biases in California schools. 


Visible Tattoos as a Source of Employment Discrimination Among Female Applicants for a Supervisory Position
Christine Henle et al.
Journal of Business and Psychology, February 2022, Pages 107-125

Abstract:
Although tattoos have increased in popularity, they may put individuals at a disadvantage when seeking employment. Drawing on the justification-suppression model and the stereotype content model, we propose that job applicants with visible tattoos experience prejudice in hiring and starting salary recommendations because they are stereotyped as less competent and warm than those without visible tattoos. In Study 1, we compared equally qualified Caucasian female applicants in their mid to late 20s with no visible tattoos, a mild visible tattoo, and extreme visible tattoos for the position of a sales manager. Tattooed applicants were less likely to be hired, especially if they had extreme visible tattoos, and were offered lower salaries and rated lower on competence (but not warmth) than applicants without visible tattoos. Furthermore, competence mediated the relationship between visible tattoos and hiring and salary recommendations. In Study 2, we examined if young Caucasian female applicants with visible tattoos can overcome prejudice through their job qualifications and found they were able to mitigate salary discrimination, but not hiring discrimination by being highly qualified. In Study 3, we proposed that young Caucasian female applicants with visible tattoos can neutralize discrimination by being highly qualified and having volunteer experience. However, volunteering did not mitigate prejudice related to visible tattoos. Our findings suggest that it is difficult for applicants with visible tattoos to overcome discrimination. 


Antiracist Curriculum and Digital Platforms: Evidence from Black Lives Matter
Saharsh Agarwal & Ananya Sen
Management Science, forthcoming

Abstract:
In this paper, we examine the impact of racially charged events on the demand for antiracist classroom resources in U.S. public schools. We use book requests made by teachers on DonorsChoose, the largest crowdfunding platform for public school teachers, as a measure of intent to address race-related topics in the classroom. We use the precise timing of high-profile police brutality and other racially charged events in the United States (2010-2020) to identify their effect on antiracism requests relative to a control group. We find a significant increase in antiracism requests following the killing of George Floyd in 2020 and a null effect for all other events in the decade. We also find an increase in requests for books featuring Latinx, Asian, Muslim, and Jewish cultures, suggesting that a focus on equality for one group can spill over and yield culturally aware dialogues for other groups as well. Event studies suggest that local protests played a role in motivating some of the teachers to post these requests. In just four months following George Floyd's death, $3.4 million worth of books featuring authors and characters from marginalized communities were successfully funded, reaching more than half a million students. Text analysis of impact notes posted by teachers suggests that hundreds of thousands of young students are being engaged in discussions about positive affirmation and cross-cultural acceptance.


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