Preference-based hiring decisions and incentives

Abstract

AbstractThis article replicates an experiment by Coffman et al. (Manag Sci 67(6):3551–3569, 2021) who separated taste-based and statistical discrimination by comparing employer choices in one of two hiring environments (treatments). Both treatments were characterized by the same ability distributions of workers in tasks on which men are found to outperform women on average, but only one allowed for gender-specific considerations. We found statistical discrimination against women when they are presented to employers not as women, but as people belonging to a low-performance group, but discrimination in their favor when their gender is revealed to potential employers. This discrimination in favor of women was observed in both male and female employers. It was greater when employers were women and disappeared when monetary incentives to employ more productive workers were higher for employers.