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Title: Prejudice and Racial Matches in Employment
Resulting in 1 citation.
1. Bond, Timothy N.
Lehmann, Jee-Yeon K.
Prejudice and Racial Matches in Employment
Labour Economics 51 (April 2018): 271-293.
Also: https://www.sciencedirect.com/science/article/pii/S0927537117302166
Cohort(s): NLSY97
Publisher: Elsevier
Keyword(s): Discrimination, Racial/Ethnic; Employment History; General Social Survey (GSS); Racial Differences; Supervisor Characteristics

We develop a model in which some employers hold unobservable racial prejudice towards black workers. Workers, however, observe a signal of prejudice status -- the presence of a black supervisor. Jobs in firms with black supervisors hold higher option value for black workers, because they are less likely to face prejudice-based termination. Hence, black workers are willing to accept employment with lower expected match quality from firms with black supervisors. We derive predictions on differences in wages and job stability across supervisor race and prejudice levels and find empirical support for them using unique longitudinal data on worker's supervisor and state-level measures of prejudice.
Bibliography Citation
Bond, Timothy N. and Jee-Yeon K. Lehmann. "Prejudice and Racial Matches in Employment." Labour Economics 51 (April 2018): 271-293.