Working Paper: NBER ID: w25357
Authors: Joanna N. Lahey; Douglas R. Oxley
Abstract: We use a laboratory experiment with randomized resumes and eyetracking to explore the effects of race on employment discrimination over the lifecycle. We show race discrimination against prime-age black job applicants that diminishes into middle age before re-emerging for older applicants. Screeners mechanically process black and white resumes similarly, but spend less time on younger black resumes, suggesting they use negative heuristics or taste-based discrimination. Screeners demonstrate levels-based statistical discrimination, believing that younger black applicants have worse computer skills and more gaps in their job histories. We find no evidence that screeners believe black applicants have worse previous experience. Screeners demonstrate variance-based statistical discrimination against black applicants of all ages, suggesting that screeners perceive the stronger history signals for white applicants, with this type of discrimination disproportionately affecting older applicants. We find suggestive evidence that the signal sent by high school attended is weaker for younger black applicants compared to younger white applicants, and we find no evidence that the signal strength of the applicant’s address varies by race. Evidence from the CPS and an additional study supports the external validity of our experiment, particularly for female job applicants. Results are robust to different controls and specification choices.
Keywords: discrimination; race; age; gender; labor market; employment
JEL Codes: J14; J15; J23; J7; J70; J71
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| race discrimination (J15) | hiring preferences (M51) |
| age (J14) | hiring preferences (M51) |
| younger black resumes (J79) | less attention (D91) |
| older black resumes (J79) | decline in preference (D11) |
| screeners believe younger black applicants (J78) | worse computer skills (C89) |
| screeners perceive stronger history signals for white applicants (J78) | variance-based discrimination (J71) |