Can social media lead to labor market discrimination? Evidence from a field experiment

In this paper, we investigate the role of social media as a source of information for recruiters to discriminate applicants. We set up a field experiment over a 12‐month period, involving more than 800 applications from two fictitious applicants which differed in their perceived origins, which is an information available only from their Facebook profiles. During the experiment, an unexpected change in the Facebook layout reduced the salience of the information available on social media profiles. Before this change, a significant 41.7% gap between the two applicants callback rates highlights that personal online profiles are used by recruiters as a source of information to discriminate against applicants of foreign origin. After the layout change that mitigates our signal, the difference in callback rates fades away. This result suggests that the screening conducted by the employers does not go beyond the main pages of profiles. It also illustrates that design choices made by online platforms may have important consequences on the extent of discrimination.     

In Search of the "Right Stuff":

ABSTRACT This paper explores a topic of much speculation but relatively little empirical investigation: How those in charge of recruiting and hiring new employees assess the advantages and disadvantages of various recruiting techniques. We also examine how organizational characteristics shape hiring managers'perceptions of the primary advantages and disadvantages of recruiting techniques. A sample of hiring managers in a major metropolitan labor market identified the primary advantage of informal recruiting to be the quality of applicants and of formal recruiting to be the volume of applicants. Our analysis also shows that hiring managers in smaller firms and in the private sector more often cite quality as an advantage of informal recruiting, while hiring managers in the public sector more often identify volume of applicants as an advantage of formal recruiting.     

Sexual orientation discrimination in the labour market

This research examines the possible discrimination faced by gay men compared to heterosexuals when applying for jobs in the Greek private sector. This issue was addressed through the observation of employer hiring decisions. Mailing pairs of curriculum vitae, distinguished only by the sexual orientation of the applicants, led to the observation that gay men faced a significantly lower chance of receiving an invitation for an interview. However, in cases where employers called applicants back, the wages offered did not differ significantly between gay and heterosexual applicants. Nevertheless, there is substantial evidence to suggest that discrimination based on sexual orientation does exist in the Greek labour market, and at alarmingly high levels.     

Automatic associations and discrimination in hiring: Real world evidence

This is the first study providing empirical support for automatically activated associations inducing discriminatory behavior among recruiters in a real-life hiring situation. Two different field experiments on ethnic discrimination in hiring are combined with a measure of employers' automatic attitudes and performance stereotypes toward Arab-Muslim men relative to Swedish men using the Implicit Association Test.The results show that the probability to invite Arab-Muslim job applicants decreases by five percentage points when the recruiter has a one standard deviation stronger negative implicit association toward Arab-Muslim men. This suggests that automatic processes may exert a significant impact on employers' hiring decisions, offering new insights into labor market discrimination.     

The effects of age and family constraints on gender hiring discrimination: A field experiment in the French financial sector

Using correspondence testing, we investigate whether age and family constraints have an effect on the gender gap in access to job interviews. We sent job applications from three pairs of candidates to the same job advertisements in the French financial sector between January and March 2002, focusing on low-skilled administrative or commercial jobs and high-skilled administrative or commercial jobs. Within each pair, the applicants' characteristics were similar except for gender. We compare the gender gap in access to job interviews for single and childless applicants aged 25 and 37. We find significant hiring discrimination against women aged 25 applying for high-skilled administrative jobs. Young men are preferred to young women when employers offer long-term contracts. Among single and childless applicants aged 37, we find no significant hiring discrimination against women. We then compare the gender job-access gap for applicants aged 37 who are single and childless or married with three children. We do not find significant hiring discrimination against female applicants aged 37.     

Are Suburban Firms More Likely to Discriminate against African-Americans?

This paper assesses whether African-Americans are more likely to experience employment discrimination in the suburbs relative to the central city. We compare central city–suburban differences in racial hiring outcomes for firms where whites are in charge of hiring to the comparable difference for firms where blacks are in charge of hiring. Both suburban black and white employers hire fewer blacks than their central-city counterparts. This geographic gap among black employers is at least as large as that of white employers. Assuming no discrimination by black employers in any location, this implies that the probability of experiencing discrimination does not vary over space. Black firms, however, are substantially more likely to hire black workers regardless of location.     

An Assessment of the Performance of Indian State-Owned Enterprises

We examine the determinants of performance of 68 Indian state-owned enterprises in the manufacturing sector for a five-year period: 1987 to 1991. Relative performance is determined using data envelopment analysis, with variations in performance patterns subsequently explained using regression analysis. We note that the performance of firms in the Indian state-owned sector is characterized by both, low performance, as well as significant and systematic variations in the performance parameters. Size is positively associated and age negatively associated with efficiency. Further, economic liberalization and reforms aimed at improving the performance of state-owned firms induces efficiency gains over time. This heterogeneity within the state-owned sector has policy implications, which we discuss. In countries which have privatized large numbers of their state-owned firms, it is often the larger establishments which have been sold to the public. The state-owned firms in the manufacturing sector that can be candidates for privatization are the smaller and older manufacturing firms. These firms may also be easier to dispose of to private investors. This finding reinforces our central thesis that firm-level analysis within the state-owned sector is useful and important for generating pragmatic policy guidelines.     

The ‘third hand’: Private sector consultants in public sector accounting change

Abstract

This paper explores the role of large private sector consulting firms in the promotion and implementation of public sector accrual accounting. By focusing on an early adopter of accrual accounting for its entire public sector, this research presents an analysis of the activities of large consulting firms in the process of a significant public sector accounting change. The role of consultants in the change is presented by analysing primary data extracted from archival sources and oral histories provided by a number of prominent actors classified as users of information (politicians), producers of information (bureaucrats) or accounting consultants. The role and impact of the consulting firms' actions can be better understood by applying concepts of non-coercive isomorphism and the interplay between self-interest and perceived public interest. The consulting firms are shown to have used phantom images to promote the case for accounting change. This was done with a zealous belief that bringing public sector accounting into line with private sector accounting was an inherently righteous objective.     

Work out or out of work — The labor market return to physical fitness and leisure sports activities

This study is the first to present evidence of the return to leisure sports in the job hiring process by sending fictitious applications to real job openings in the Swedish labor market. In the field experiment job applicants were randomly given different information about their type and level of leisure sports. Applicants who signaled sports skills had a significantly higher callback rate of about 2 percentage points, and this effect was about twice as large for physically demanding occupations.Additional evidence of a sports premium in the regular labor market is arrived at when analyzing the long-run impact of physical fitness on later labor market outcomes. The analysis uses register data on adult earnings and physical fitness when enlisting at age 18. The fitness premium, net of unobservable family variables, is in the order of 4-5%, but diminishes to 2% when controlling for non-cognitive skills.     

Perceptual differences between recruiters and students on the importance of applicant and job characteristics: a research note based on evidence from Singapore

This study compared the perceptions of various important job applicant characteristics, job characteristics and job benefits between 107 corporate recruiters and 191 business undergraduates in Singapore. Results indicated significant incongruence between recruiter and student perceptions of a large number of job characteristics and benefits. However, perceptual differences were less extensive in the case of applicant attributes. The implications of these findings, and suggestions for greater perceptual congruence between recruiters and applicants, are discussed.     

Can group identity explain the gender gap in the recruitment process?

Despite evidence that the gender gap in the labour market favours men, aggregate findings from correspondence studies show that women are more likely than men to be invited for a job interview. We hypothesize that the predominance of women among recruiters may explain this somewhat puzzling finding; recruiters may favour applicants of their own gender. We use the data from a large-scale correspondence study to test this hypothesis. As expected, we find that female applicants are more likely to receive callbacks for interview. We also see that in our sample the majority of contact persons responsible for the recruitment process are female. More importantly, we find that if recruiter and applicant are of the same gender, then the likelihood that the applicant will be invited for an interview increases. These findings reveal the gender favouritism at the selection stage in the labour market.     

Evidence of ethnic discrimination in the Swedish labor market using experimental data

We present evidence of ethnic discrimination in the recruitment process by sending fictitious applications to real job openings. Applications with identical skills were randomly assigned Middle Eastern- or Swedish-sounding names and applications with a Swedish name receive fifty percent more callbacks for an interview.We extend previous analyses by adding register and interview information on firms/recruiters to the experimental data. We find that male recruiters and workplaces with fewer than twenty employees less often call applications with a Middle Eastern name for an interview.     

Quotas,Productivity, and Prices: The Case of Anchovy Fishing

I exploit a 2009 reform that introduced individual fishing quotas (catch shares) for Peruvian anchovy—the largest fishery in the world—to assess the causal impact of production quotas on within‐firm productivity and market prices. Unique features of the data allow me to create two alternative counterfactuals: (i) anchovy fishing operations in a region of the country that was mandated to implement quotas with a delay, and (ii) variation in quota allocations across ships. I find that quotas do not increase within‐asset or within‐firm productivity in quantities. Instead, a 200% increase in anchovy prices benefits extraction firms through higher revenues, consistent with two mechanisms enacted by individual fishing quotas: more orderly industry operations reducing excess supply and an increase in bargaining power of extraction firms with respect to fish‐processing. Several market characteristics across geographies differentially affect market prices after the quota regime. Supplementary evidence on fewer operational infractions, higher product quality, and a lower banking delinquency observed during the quota regime suggests the existence of efficiency gains rather than purely rent transfers.     

Supply Chain Management as Private Sector Regulation: What does it Mean for Business Strategy and Public Policy?

The growing practice of environmental supply chain management by firms constitutes private sector regulation that is analogous in many ways to public sector regulation. Similarly to their public counterparts, private sector regulators set standards, apply standards, monitor for compliance, apply sanctions and require corrective action. Private sector regulation differs, however, in the source of authority, external oversight, analytical requirements, public participation and available sanctions. This article argues that supply chain management by firms goes beyond business objectives by creating positive environmental externalities for society, and that more systematic study of the similarities and contrasts between the two forms of regulation may provide valuable lessons for both. Further, it may be possible to increase the effectiveness of private sector regulation to achieve both public societal and private business goals. From a business perspective, supply chain management enables firms to strategically redefine their relationships with government, reduce uncertainty and promote goal‐oriented collaboration. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment     

A field experiment to study sex and age discrimination in the Madrid labour market

This article presents the findings of a field experiment carried out in Madrid which aims to analyse gender and age discrimination in hiring in the labour market of Madrid. A set of five pairs of fictitious man–woman curricula was sent in response to 1062 job offers in six occupations which were advertised on Internet over an eight-month period. It was quantified subsequently the extent to which the different firms contacted more or less the candidates of different sex, age and marital status. No discrimination is detected against women in terms of access to job interviews; however, discriminatory conduct is seen regarding the phenomenon of occupational gender segregation, in the sense that there is a continuance among employers of stereotyped views on the greater suitability of women for certain tasks. No evidence is found to indicate firms showing relative discrimination against married women with children in the first phase of hiring process. And a clear evidence of discrimination is obtained on the basis of age: firms show a substantial fall in interest over interviewing 38-year-old candidates (compared to those aged 24 or 28). This would imply that the tendency to discriminate against older workers may be high, and, what is more, it may start at a surprisingly young age.     

Social Media Screening and Procedural Justice: Towards Fairer Use of Social Media in Selection

Companies have started using social media for screening applicants in the selection process. Thereby, they enter a low-cost source of information on applicants, which potentially allows them to hire the right person on the job and avoid irresponsible employee behaviour and negligent hiring lawsuits. However, a number of ethical issues are associated with this practice, which give rise to the question of the fairness of social media screening. This article aims to provide an assessment of the procedural justice of social media screening and to articulate recommendations for a fairer use of social media in the selection process. To achieve this, a systematic literature review of research articles pertaining to social media screening has been conducted. Thereby, the benefits and ethical issues relating to social media screening, as well as recommendations for its use have been extracted and discussed against Leventhal’s (1980) rules of procedural justice. It turns out that without clear guidelines for recruiters, social media screening cannot be considered procedurally fair, as it opens up way too many opportunities for infringements on privacy, unfair discrimination, and adverse selection based on inaccurate information. However, it is possible to enhance the fairness of this practice by establishing clear policies and procedures to standardize the process.

     

The efficiency of training and hiring with intrafirm bargaining

This paper demonstrates that firms hire and train workers efficiently in a matching and intrafirm bargaining economy when the Hosios condition holds and returns to scale are constant. This conclusion stands in contrast to the prevailing view that training costs are a source of inefficiency in imperfect labor markets. The efficiency of the competitive economy relies on the ability of large firms to take into account the negative impact of the training rate on the wages negotiated inside the firm through intrafirm bargaining: untrained workers accept a wage reduction in compensation for potential training that is accessible only following employment. This intrafirm bargaining process solves efficiency problems associated with training costs that would otherwise lead to inefficient hiring and training decisions. This conclusion holds true for both specific and general human capital.     

When ethnic discrimination in recruitment is likely to occur and how to reduce it: Applying a contingency perspective to review resume studies

Cultural minorities often suffer from ethnic discrimination in recruitment. To measure ethnic discrimination accurately, researchers have shifted from interviews, survey studies, and statistical salary comparisons to resume studies. To conduct a resume study, researchers send out similar, paired resumes in response to job advertisements and vary the names to indicate a membership to different ethnic groups. Previous resume studies have found that ethnic discrimination in recruitment is a common problem across different countries. However, previous research reported large discrimination differences across studies. Not much is known about boundary conditions and moderators of ethnic discrimination in recruitment. To create the theoretical basis for future research, we expand on previous research and reviews by elucidating when ethnic discrimination is likely to occur and how it can be reduced. We also provide insight into how resume study research can contribute to identifying the causes and mechanisms of ethnic discrimination. For this purpose, we develop a contingency perspective based on a literature review and explain how ethnic discrimination depends on the characteristics of the: 1) applicant, 2) job, 3) recruiter, 4) hiring organization, 5) country, and 6) ethnic group. Further, we explain that ethnic discrimination can be reduced by using anonymous resumes, adding information on job applicants, “whitening” resumes, including volunteer work in resumes, and conducting intervention studies. Lastly, we provide a rich agenda, and present thought-provoking topics for future research.     

Influential ownership and capital structure

This paper explores the relation between ownership structures and capital structures in Russia—an economy with a state‐run banking sector, weak corporate governance, and highly concentrated ownership. We find that firms with the state as controlling shareholder have significantly higher leverage than firms controlled by domestic private controlling shareholders other than oligarchs. Both firms controlled by the state or oligarchs finance their growth with more debt than other firms. Profitability is negatively related to leverage across all types of controlling owners, indicating a preference for internal funding over debt. The results indicate that firms with owners that have political influence or ties to large financial groups enjoy better access to debt. Copyright © 2009 John Wiley & Sons, Ltd.     

Firm Recruitment Behaviour: Sequential or Non‐sequential Search?

In the extensive job search literature, studies assume either sequential or non‐sequential search. This article introduces a novel method to test the hypothesis that firms search sequentially based on the relationship between the number of rejected job applicants and the number of filled vacancies. We distinguish between ten different search methods. For most search methods, including methods that rely on social networks and temporary help agencies, we find that sequential search cannot be rejected. However, when firms use advertising or public/private employment agencies, sequential search is rejected. Hence, we find that both forms of search are relevant for our understanding of the labour market. Further, the form of search is closely related to the search method used.