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The boss is watching : how monitoring decisions hurt black workers

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Cavounidis, Costas, Lang, Kevin and Weinstein, Russell (2022) The boss is watching : how monitoring decisions hurt black workers. The Economic Journal . ISSN 0013-0133. (In Press)

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Abstract

African Americans face shorter employment durations than similar whites. We hypothesize that employers discriminate in acquiring or acting on ability-relevant information. In our model, monitoring black but not white workers is self-sustaining. New black hires were more likely fired by previous employers after monitoring. This reduces firms’ beliefs about ability, incentivizing discriminatory monitoring. We confirm our predictions that layoffs are initially higher for black than non-black workers but that they converge with seniority and decline more with AFQT for black workers. Two additional predictions, lower lifetime incomes and longer unemployment durations for black workers, have known empirical support.

Item Type: Journal Article
Subjects: H Social Sciences > HD Industries. Land use. Labor
Divisions: Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH): African Americans -- Employment, Discrimination in employment
Journal or Publication Title: The Economic Journal
Publisher: Oxford University Press
ISSN: 0013-0133
Official Date: 2022
Dates:
DateEvent
2022Published
1 October 2022Accepted
Status: Peer Reviewed
Publication Status: In Press
Reuse Statement (publisher, data, author rights): This is a pre-copyedited, author-produced version of an article accepted for publication in The Economic Journal following peer review. The version of record [insert complete citation information here] is available online at: xxxxxxx [insert URL and DOI of the article on the OUP website].
Access rights to Published version: Restricted or Subscription Access
Date of first compliant deposit: 3 October 2022
RIOXX Funder/Project Grant:
Project/Grant IDRIOXX Funder NameFunder ID
SES-1260917[NSF] National Science Foundation (US)http://dx.doi.org/10.13039/100000001
SES-1851636[NSF] National Science Foundation (US)http://dx.doi.org/10.13039/100000001
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