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  • Essay / Labor Market Discrimination - 549

    U.S. labor markets have serious problems with respect to average workday length, maternity leave, health care, and benefits; but also discrimination. It’s no surprise that discrimination occurs in the workplace; but what is surprising is that discrimination occurs much earlier than previously thought. A study by Marianne Bertrand, a professor at the University of Chicago, and Sendhil Mullainathan, a professor at the Massachusetts Institute of Technology, concluded that discrimination begins before the interview and begins with the job seeker's name. The study consisted of 5,000 fictitious CVs sent to more than 1,300 people. job opportunities in Chicago and Boston. The resumes were very diverse, some high quality, some low quality, some with “white sounding” names and some with “black” sounding names. The study's conclusion was not a surprise; as white-sounding names received higher results. Whether they realize it or not, employers discriminate on the basis of ethnicity. White-sounding names are 50% more likely to be recalled by employers than black-sounding names, regardless of the type of occupation held. High-level occupations – the managerial and executive category – had the lowest racial gap of just 33%! The highest racial gap, 64%, occurred in low-level jobs. These were often “equal opportunity employers”. Additionally, discrimination is even greater for African American women than for African American men. “The lowest recall rate for black female names was 6.1 percentage points behind the lowest rated white female name.” Many attribute discrimination in the job market as the cause of the almost twice as high risk of unemployment among African Americans as among white Americans. This could also explain why African Americans earn on average 25% less than white Americans. Many variables were tested in addition to the ethnicity projected by the job seeker's name. The review results concluded that resumes with better qualifications and fewer "gaps" improved the callback rate by 30% for white-sounding names, but did not do so at all for black-sounding names. . They also tested the effects of the job seeker's address. Data shows that living in a better, whiter-sounding neighborhood (more educated, higher income) is beneficial for white-sounding names, but is not helpful for black-sounding names. Human resources workers often use the “deselection process.” ”, which is a strategy used to filter CVs and applications. They do this to separate preferable resumes from undesirable ones. Often, whether consciously or not, this includes removing black or foreign-sounding names. Kimberly Wilson, who works in human resources, often uses the deselection process.