Assumed white job applicants receive 9.5% more interview offers on average than assumed Black applicants in new study

Racial bias exists in the job market from the moment a job-seeker hits “submit” on an application, according to new research.

Some experts say companies can consider this a reminder to assess their hiring practices and make changes when they spot inequities.

New findings on racial disparities. National Bureau of Economic Research economists released a new paper detailing the results of an experiment, in which they submitted 84,000 job applications to 11,000 jobs at 108 Fortune 500 companies between 2019 and 2021.

The researchers sent up to four pairs of applications to entry level jobs that didn’t require a college degree or much experience. The applications were identical, except for the associated names, which were changed to suggest the job-seeker was either Black or white.

Assumed white and female names (like Misty, Heather, and Laurie) were contacted most often, while assumed Black female names (like Lawanda, Tameka, and Latisha) were contacted the least.

While the experiment—the largest of its kind in the US—discovered that gender discrimination at the pre-interview level is rare, racial discrimination appeared prevalent. Assumed white applicants received 9.5% more interview offers than assumed Black applicants on average.

The findings likely underestimate the frequency of racial discrimination, since it happens less frequently at large companies, and other underrepresented races weren’t part of the research, sociologist Lincoln Quillian told the New York Times.

The worst performing companies, many in the auto industry, offered job interviews to assumed white applicants 23% more than assumed Black applicants.

Genuine Parts and AutoNation were the only companies that received a one star (the lowest) grade. AutoNation, a used car retailer, contacted assumed white applicants 43% more than assumed Black applicants, and Genuine Parts Company, an auto parts company, contacted 33% more. Conversely, Avis-Budget, Dr. Pepper, and Charter/Spectrum had little to no racial discrepancies, and received three stars (the highest).

“We want to bring people’s attention not only to the fact that racism is real, sexism is real, some are discriminating, but also that it’s possible to do better, and there’s something to be learned from those that have been doing a good job,” Patrick Kline, an economist at the University of California, Berkeley and coauthor of the study, told the Times.

“We are always evaluating our practices to ensure inclusivity and break down barriers, and we will continue to do so,” Heather Ross, a spokesperson for Genuine Parts directed HR Brew to its statement in the Times. AutoNation did not respond to HR Brew’s request for comment.

Taking action. Researchers found that having a diversity officer and diversity training didn’t appear to reduce the chance of discrimination in entry-level hiring. However, companies with centralized and formal HR offices had less bias, according to the Times.

Workplace equity scholars say that the research is a mixed bag of frustration and hope. Ashleigh Shelby Rosette, leadership professor at the Fuqua School of Business at Duke University and Academy of Management scholar, said that HR leaders should look at well-performing companies as models of how to improve their own practices.

“On the other hand, the prevalence of bias among a significant portion of the companies listed in the study is discouraging but not unexpected,” Rosette told HR Brew via email. “Findings like these suggest that the recent surge in resistance toward DEI initiatives lacks substantial justification. The necessity for policies, procedures, and programs aimed at mitigating systemic bias in hiring remains of significant importance.”

Adina Sterling, associate professor at Columbia Business School and an Academy of Management scholar, said that the research is a reminder to HR leaders that, regardless of the Civil Rights Act of 1964, Black individuals still receive less interest than their similarly credentialed white counterparts.

“I would encourage HR leaders to decide to enact systems-level change to fix this, by for example, using technology and standardized selection processes,” Sterling told HR Brew in an email. “I also recommend that HR leaders audit their own firms, so that they can stress-test them to track change.”