New economic research shows that even under fully colorblind hiring and admissions policies, outcomes over time would not be fair.

Abstract I study labor markets in which firms both hire via referrals and are race blind or color-blind. I develop an employment model showing that despite initial equality in ability, employment, wag...

New economic research shows that even under fully colorblind hiring and admissions policies, outcomes over time would not be fair.

Research highlights the important role of social networks in the labor markets

YouTube video by Research Lab

Research highlights the important role of social networks in the labor markets

Abstract I study labor markets in which firms both hire via referrals and are race blind or color-blind. I develop an employment model showing that despite initial equality in ability, employment, wages, and network structure, minorities receive disproportionately fewer jobs through referrals and lower expected wages, simply because their social group is smaller. This discriminatory outcome, which I term “social network discrimination,” arises from homophily and falls outside the dominant economics discrimination models, which are taste based and statistical. I calibrate the model using a nationally representative sample of youth networks to estimate the lower bound welfare gap caused by social network discrimination, which also disadvantages black workers. This paper isolates a potential underlying mechanism for inequality, adding to the understanding of labor-market disparities that have been widely studied across the social sciences. In doing so, the paper disproves the proposition that color-blind policies inherently promote individual merit.

In troubled times, one of Martin Luther King Jr.’s most powerful lines may seem passive or even naive. But it’s a call to action.

Podcast Episode · Machines Like Us · 2024-12-03 · 46m

Abstract. We assess the impact of discrimination on Black individuals’ job networks across the U.S. using a two-stage field experiment with 400+ fictitious

The dangers of climate change are more acknowledged today than ever before. But that is not enough.