A Boss Like Me*

Abstract

There is extensive evidence of hiring decisions being biased with respect to applicant race and gender. We look at the other side of the hiring transaction, presenting what we believe to be first systematic investigation of bias in labor supply. In a choice experiment we examine decisions of job seekers faced with 14,544 pairs of job offers, with varying characteristics. White job seekers are around 11% more likely to choose a job offered by a white manager than an otherwise identical job offered by a black, while black respondents are 17% less likely. Estimates of intensity of preference, measured by willingness to accept a lower hourly wage, over employer attributes are reported. We find little evidence of bias with respect to gender. The results suggest a mechanism for disadvantage on basis of race in a competitive market for managerial or entrepreneurial roles