A job applicant with a name that sounds like it might belong to an African-American - say, Lakisha Washington or Jamal Jones - can find it harder to get a job. Despite laws against discrimination, affirmative action, a degree of employer enlightenment, and the desire by some businesses to enhance profits by hiring those most qualified regardless of race, African-Americans are twice as likely as whites to be unemployed and they earn nearly 25 percent less when they are employed.
Now a "field experiment" by NBER Faculty Research Fellows Marianne Bertrand and Sendhil Mullainathan measures this discrimination in a novel way. In response to help-wanted ads in Chicago and Boston newspapers, they sent resumes with either African-American- or white-sounding names and then measured the number of callbacks each resume received for interviews. Thus, they experimentally manipulated perception of race via the name on the resume. Half of the applicants were assigned African-American names that are "remarkably common" in the black population, the other half white sounding names, such as Emily Walsh or Greg Baker.
In total, the authors responded to more than 1,300 employment ads in the sales, administrative support, clerical, and customer services job categories, sending out nearly 5,000 resumes. The ads covered a large spectrum of job quality, from cashier work at retail establishments and clerical work in a mailroom to office and sales management positions.
The results indicate large racial differences in callback rates to a phone line with a voice mailbox attached and a message recorded by someone of the appropriate race and gender. Job applicants with white names needed to send about 10 resumes to get one callback; those with African-American names needed to send around 15 resumes to get one callback. This would suggest either employer prejudice or employer perception that race signals lower productivity. It indicates that a white name yields as many more callbacks as an additional eight years of experience.