Business

A Discrimination Report Card

P. Kline, E. K. Rose, et al.

Discover how researchers Patrick Kline, Evan K. Rose, and Christopher R. Walters have developed an innovative Empirical Bayes grading scheme that effectively measures racial biases in U.S. employers. This method not only provides insight into the grading process but also mitigates the chances of ranking errors. Their findings reveal striking patterns in corporate racial contact gaps, helping to set the stage for future explorations into bias in hiring practices.... show more

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Abstract

We develop an Empirical Bayes grading scheme that balances the informativeness of the assigned grades against the expected frequency of ranking errors. Applying the method to a massive correspondence experiment, we grade the racial biases of 97 U.S. employers. A four-grade ranking limits the chances that a randomly selected pair of firms is mis-ranked to 5% while explaining nearly half of the variation in firms' racial contact gaps. The grades are presented alongside measures of uncertainty about each firm's contact gap in an accessible rubric that is easily adapted to other settings where ranks and levels are of simultaneous interest.

Publisher

Published On

Jun 23, 2023

Authors

Patrick Kline, Evan K. Rose, Christopher R. Walters

DOI

https://doi.org/10.2139/ssrn.4787404

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