Employer Neighborhoods and Racial Discrimination

Working Paper: NBER ID: w28153

Authors: Amanda Y. Agan; Sonja B. Starr

Abstract: Using a large field experiment, we show that racial composition of employer neighborhoods predicts employment discrimination patterns in a direction suggesting in-group bias. Our data also show racial disparities in the geographic distribution of job postings. Simulations illustrate how these patterns combine to shape disparities. When jobs are located far from Black neighborhoods, Black applicants are doubly disadvantaged: discrimination patterns disfavor them, and they have fewer nearby opportunities. Finally, building on prior work on Ban-the-Box laws, we show that employers in less Black neighborhoods appear much likelier to stereotype Black applicants as potentially criminal when they lack criminal record information.

Keywords: No keywords provided

JEL Codes: J23; J71; R23


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
neighborhood racial composition (R23)employment discrimination patterns (J71)
neighborhood racial composition (R23)likelihood of receiving a callback (J68)
geographic distribution of job postings (R23)employment disparities for black applicants (J79)
absence of criminal record information + neighborhood demographics (R23)discrimination against black applicants (J79)

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