VOL 94 NO. 4 BERTRAND AND MULLAINATHAN: RACE IN THE LABOR MARKET experience. This resume quality manipulation which names are distinctively White and which needs to be somewhat subtle to avoid making a are distinctively African-American. Distinctive higher-quality job applicant overqualified fc names are those that have the highest ratio of given job. We try to avoid this problem by frequency in one racial group to frequency in making sure that the features listed above are the other racial group not all added at once to a given resume. this As a check of distinctiveness, we conducted a leaves us with a high-quality and a low-quality survey in various public areas in Chicago. Each pool of resumes respondent was asked to assess features of a To minimize similarity to actual job seekers, person with a particular name, one of which is we use resumes from Boston job seekers to race. For each name, 30 respondents were asked form templates for the resumes to be sent out in to identify the name as either "White " "African- Chicago and use resumes from Chicago job American, ""Other, "or"Cannot Tell. "In gen- seekers to form templates for the resumes to be eral, the names led respondents to readily sent out in Boston. To implement this migra- attribute the expected race for the person but previous employers on the resumes More spe- were disregarded, ptions and these names ion, we alter the names of the schools and there were a few ex cifically, for each Boston resume we use the The final list of first names used for this study Chicago resumes to replace a Boston school is shown in Appendix Table Al. The table with a Chicago school. 4 We also use the Chi- reports the relative likelihood of the names for cago resumes to replace a Boston employer with the Whites and African-Americans in the Mas a Chicago employer in the same industry. We sachusetts birth certificates data as well as use a similar procedure to migrate Chicago re- the recognition rate in the field survey. As sumes to Boston. This produces distinct but Appendix Table Al indicates, the African- realistic looking resumes, similar in their edu- American first names used in the experiment are cation and career profiles to this subpopulation quite common in the population. This suggests of job searchers. that by using these names as an indicator of race, we are actually covering a rather large B. Identities of Fictitious Applicants segment of the African-American population Applicants in each race/sex/city/resume qual The next step is to generate identities for the ity cell are allocated the same phone number fictitious job applicants: names, telephone num- This guarantees that we can precisely track em bers, postal addresses, and(possibly) e-mail ployer callbacks in each of these cells. The addresses. The choice of names is crucial to our phone lines we use are virtual ones with only a experiment. To decide on which names are voice mailbox attached to them. a similar out uniquely African-American and which are going message is recorded on each of the voice uniquely white, name frequency data mailboxes but each message is recorded by calculated from birth certificates of all babies someone of the appropriate race and ge born in Massachusetts between 1974 and 1979 We tabulate these data by race to determine 18 For example, Maurice and Jerome are distinctively African-American names in a frequency sense yet are not perceived as such by many peopl lever tailed summary of resume characteristics by quality cause there is censoring of the data at five births. If there an In Section Ill, subsection B, and Table 3, we provi ikelihood ratio of∞ ewer than five babies in any race/name cell,it We try as much as possible to match high schools and (and we do not know whether a cell has ity and demographic characteristic censored). This is primarily a problem for the Note that for applicants with schooling or work expe- of how many African-American babies hav rience outside of the Boston or Chicago areas, we leave the names use more White-sounding last name We also generate a set of different fonts, layouts, and for White applicants and more African-Americar over letters to further differentiate the resumes. These are last names for African-American applicants. The lations of Murphy, Murray, O'Brien, Ryan, Sullivan, and Walsh. The race, such as affiliation with a minority group because we last names used for African-American applicants are: Jack- felt such affiliations may especially convey more than race. son, Jones, Robinson, Washington, and williams
VOL. 94 NO. 4 BERTRAND AND MULLAINATHAN: RACE IN THE LABOR MARKET 995 experience. This resume quality manipulation needs to be somewhat subtle to avoid malung a higher-quality job applicant overqualified for a given job. We try to avoid this problem by making sure that the features listed above are not all added at once to a given resume. This leaves us with a high-quality and a low-quality pool of resumes.13 To minimize similarity to actual job seekers, we use resumes from Boston job seekers to form templates for the resumes to be sent out in Chicago and use resumes from Chicago job seekers to form templates for the resumes to be sent out in Boston. To implement this rnigration, we alter the names of the schools and previous employers on the resumes. More specifically, for each Boston resume, we use the Chicago resumes to replace a Boston school with a Chicago schoo~.'~ We also use the Chicago resumes to replace a Boston employer with a Chicago employer in the same industry. We use a similar procedure to migrate Chicago resumes to ~0ston.l~ This produces distinct but realistic looking resumes, similar in their education and career rofiles to this subpopulation of job searchers. 1t' B. Identities of Fictitious Applicants The next step is to generate identities for the fictitious job applicants: names, telephone numbers, postal addresses, and (possibly) e-mail addresses. The choice of names is crucial to our experiment." To decide on which names are uniquely African-American and which are uniquely White, we use name frequency data calculated from birth certificates of all babies born in Massachusetts between 1974 and 1979. We tabulate these data by race to determine 13 In Section 111, subsection B, and Table 3, we provide a detailed summary of resume characteristics by quality level. l4 We try as much as possible to match high schools and colleges on quality and demographic characteristics. l5 Note that for applicants with schooling or work experience outside of the Boston or Chicago areas, we leave the school or employer name unchanged. l6 We also generate a set of different fonts, layouts, and cover letters to further differentiate the resumes. These are applied at the time the resumes are sent out. I' We chose name over other potential manipulations of race, such as affiliation with a minority group, because we felt such affiliations may especially convey more than race. which names are distinctively White and which are distinctively African-American. Distinctive names are those that have the highest ratio of frequency in one racial group to frequency in theother racial group. As a check of distinctiveness, we conducted a survey in various public areas in Chicago. Each respondent was asked to assess features of a person with a particular name, one of which is race. For each name, 30 respondents were asked to identify the name as either "White," "AfricanAmerican," "Other," or "Cannot Tell." In general, the names led respondents to readily attribute the expected race for the person but there were a few exceptions and these names were disregarded.'* The final list of first names used for this study is shown in Appendix Table Al. The table reports the relative likelihood of the names for the Whites and African-Americans in the Massachusetts birth certificates data as well as the recognition rate in the field survey.19 As Appendix Table A1 indicates, the AfricanAmerican first names used in the experiment are quite common in the population. This suggests that by using these names as an indicator of race, we are actually covering a rather large segment of the African-American population.20 Applicants in each race/sex/city/resume quality cell are allocated the same phone number. This guarantees that we can precisely track employer callbacks in each of these cells. The phone lines we use are virtual ones with only a voice mailbox attached to them. A similar outgoing message is recorded on each of the voice mailboxes but each message is recorded by someone of the appropriate race and gender. la For example, Maurice and Jerome are distinctively African-American names in a frequency sense yet are not perceived as such by many people. l9 So many of names show a likelihood ratio of x because there is censoring of the data at five births. If there are fewer than five babies in any racelname cell, it is censored (and we do not know whether a cell has zero or was censored). This is primarily a problem for the computation of how many African-American babies have "White" names. 'O We also tried to use more White-sounding last names for White applicants and more African-American-sounding last names for African-American applicants. The last names used for White applicants are: Baker, Kelly, McCarthy, Murphy, Murray, O'Brien, Ryan, Sullivan, and Walsh. The last names used for African-American applicants are: Jackson, Jones, Robinson, Washington, and Williams
THE AMERICAN ECONOMIC REVIEW SEPTEMBER 2004 Since we allocate the same phone number fo ample four resumes(two high-quality and two applicants with different names, we cannot use low-quality) that fit the job description and re a person name in the outgoing message quirements as closely as possible. In some While we do not expect positive feedback cases, we slightly alter the resumes to improve from an employer to take place via postal mail, the quality of the match, such as by adding the resumes still need postal addresses. We there- knowledge of a specific software program fore construct fictitious addresses based on real One of the high- and one of the low-quality streets in Boston and Chicago using the white resumes selected are then drawn at random to Pages. We select up to three addresses in each receive African-American names, the other 5-digit zip code in Boston and Chicago. Within high- and low-quality resumes receive White cities,we randomly assign addresses across all names. We use male and female names for resumes. We also create eight e-mail addresses, sales jobs, whereas we use nearly exclusivel four for Chicago and four for Boston. These female names for administrative and clerical e-mail addresses are neutral with respect to both jobs to increase callback rates. Based on sex race and sex. Not all applicants are given an race, city, and resume quality, we assign a re- e-mail address. The e-mail addresses are used sume the appropriate phone number. We also almost exclusively for the higher-quality re- select at random a postal address. Finally, e sumes. This procedure leaves us with a bank of mail addresses are added to most of the high names, phone numbers, addresses, and e-mail quality resumes. The final resumes are addresses that we can assign to the template formatted, with fonts, layout, and cover letter resumes when responding to the employment style chosen at random. The resumes are then faxed (or in a few cases mailed)to the em- ployer. All in all, we respond to more than C. Responding to Ads 1, 300 employment ads over the entire sample period and send close to 5, 000 resumes 2001 and January 2002 in Boston and between July 2001 and May 2002 in Chicago. 22Over D. Measuring Responses that period, we surveyed all employment ads in We measure whether a given resume elicits a the Sunday editions of The Boston Globe and callback or e-mail back for an interview. For The Chicago Tribune in the sales, administra- each phone or e-mail response, we use the con- tive support, and clerical and customer services tent of the message left by the employer(name sections. We eliminate any ad where applicants of the applicant, company name, telephone were asked to call or appear in person. In fact, number for contact)to match the response to the most of the ads we surveyed in these job cate- corresponding resume-ad pair. Any attempt gories ask for applicants to fax in or(more by employers to contact applicants via postal rarely) mail in their resume. We log the name mail cannot be measured in our experiment (when available) and contact information for since the addresses are fictitious. Several hu each employer, along with any information on man resource managers confirmed to us that he position advertised and specific require- ments(such as education, experience, or com puter skills). We also record whether or not the ad explicitly states that the employer is an equal resumes that are appropriate matches for a given ad In such pportunity employer. instances, we send only two resumes. For each ad. we use the bank of resumes to Though the same na ce that no given ad receives multiple Male names were used for a few administrative jobs in 2 The e-mail addresses are registered on Yahoo. com, the first month of the experiment Angelfire. com, or Hotmail. com 26 In the first month of the experiment, a few high- This period spans tighter and slacker labor markets. In quality resumes were sent without e-mail addresses and a our data, this is apparent as callback rates(and number of low-quality resumes were given e-mail addresses. See new ads)dropped after September 11, 2001. Interestingly, Table 3 for details however, the racial gap we measure is the same across these 27Very few employers used e-mail to contact an appli- two periods cant back
996 THE AMERICAN ECONOMIC REVIEW SEPTEMBER 2004 Since we allocate the same phone number for applicants with different names, we cannot use a person name in the outgoing message. While we do not expect positive feedback from an employer to take place via postal mail, resumes still need postal addresses. We therefore construct fictitious addresses based on real streets in Boston and Chicago using the White Pages. We select up to three addresses in each 5-digit zip code in Boston and Chicago. Within cities, we randomly assign addresses across all resumes. We also create eight e-mail addresses, four for Chicago and four for ~oston.~~ These e-mail addresses are neutral with respect to both race and sex. Not all applicants are given an e-mail address. The e-mail addresses are used almost exclusively for the higher-quality resumes. This procedure leaves us with a bank of names, phone numbers, addresses, and e-mail addresses that we can assign to the template resumes when responding to the employment ads. C. Responding to Ads The experiment was carried out between July 2001 and January 2002 in Boston and between July 2001 and May 2002 in ~hica~o.~~ Over that period, we surveyed all employment ads in the Sunday editions of The Boston Globe and The Chicago Tribune in the sales, administrative support, and clerical and customer services sections. We eliminate any ad where applicants were asked to call or appear in person. In fact, most of the ads we surveyed in these job categories ask for applicants to fax in or (more rarely) mail in their resume. We log the name (when available) and contact information for each employer, along with any information on the position advertised and specific requirements (such as education, experience, or computer skills). We also record whether or not the ad explicitly states that the employer is an equal opportunity employer. For each ad,-we use the bank of resumes to "The e-mail addresses are registered on Yahoo.com, Angelfire.com, or Hotmail.com. 22 This period spans tighter and slacker labor markets. In our data, this is apparent as callback rates (and number of new ads) dropped after September 11, 2001. Interestingly, however, the racial gap we measure is the same across these two periods. sample four resumes (two high-quality and two low-quality) that fit the job description and requirements as closely as possible.23 In some cases, we slightly alter the resumes to improve the quality of the match, such as by adding the knowledge of a specific software program. One of the high- and one of the low-quality resumes selected are then drawn at random to receive African-American names, the other high- and low-quality resumes receive White names.24 We use male and female names for sales jobs, whereas we use nearly exclusively female names for administrative and clerical jobs to increase callback rates.25 Based on sex, race, city, and resume quality, we assign a resume the appropriate phone number. We also select at random a postal address. Finally, email addresses are added to most of the highquality resumes.26 The final resumes are formatted, with fonts, layout, and cover letter style chosen at random. The resumes are then faxed (or in a few cases mailed) to the employer. All in all, we respond to more than 1,300 employment ads over the entire sample period and send close to 5,000 resumes. D. Measuring Responses We measure whether a given resume elicits a callback or e-mail back for an interview. For each phone or e-mail response, we use the content of the message left by the employer (name of the applicant, company name, telephone number for contact) to match the response to the corresponding resume-ad pair.27 Any attempt by employers to contact applicants via postal mail cannot be measured in our experiment since the addresses are fictitious. Several human resource managers confirmed to us that 27 In some instances, our resume bank does not have four resumes that are appropriate matches for a given ad. In such instances, we send only two resumes. 24 Though the same names are repeatedly used in our experiment, we guarantee that no given ad receives multiple resumes with the same name. 25 Male names were used for a few administrative jobs in the first month of the experiment. 26 In the first month of the experiment, a few highquality resumes were sent without e-mail addresses and a few low-quality resumes were given e-mail addresses. See Table 3 for details. 27 Very few employers used e-mail to contact an applicant back
VOL 94 NO. 4 BERTRAND AND MULLAINATHAN: RACE IN THE LABOR MARKET TABLE 1-MEAN CALLBACK RATES BY RACIAL SOUNDINGNESS OF NAMES Percent callback Percent callback for Percent difference African-American names Ratio All se 965 6.45 [243 (0000 Chicago 149 [1,352 Boste [1083 (00003) Females in administrative jobs 1,358】 [1,359 0.0003) Females in sales jobs [502] (0.3523) 575 (00513) different subsamples of sent resumes, the callback rates for applicants with American-sounding name(column 2), as well as the ratio(column 3)and ng the null hypothesis that the callback rates are equal across racial groups. employers rarely, if ever, contact applicants via name). We return to this issue in Section IV, ostal mail to set up interviews subsection B Finally, and this is an issue pervasive in both E. Weaknesses of the experiment our study and the pair-matching audit studies, ds represent only one channel for We have already highlighted the strengths of job search. As is well known from previous this experiment relative to previous audit stud- work, social networks are another common ies. We now discuss its weaknesses. First, our means through which people find jobs and one outcome measure is crude, even relative to the that clearly cannot be studied here. This omis- previous audit studies. Ultimately, one cares sion could qualitatively affect our results if about whether an applicant gets the job and African-Americans use social networks more or about the wage offered conditional on getting if employers who rely more on networ the job. Our procedure, however, simply mea entiate less by ra he search process has even moderate frictions, III. Results one would expect that reduced interview rates would translate into reduced job offers. How A. Is There a Racial Gap in Callback? ever, we are not able to translate our results into aps in hiring rates or gaps in earnings Table I tabulates average callback rates by Another weakness is that the resumes do not racial soundingness of names. Included in directly report race but instead suggest race brackets under each rate is the number of re- through personal names. This leads to various sumes sent in that cell. Row I presents our chosen to make race salient, some employers may simply not notice the names or not recog nize their racial content. On a related note 28 As Appendix Table Al indicates, the African because we are not assigning race but only American names we use are, however, quite common race-specific names, our results are not repre- aman g Africah-Amenicans deng this ae s on COncem. sentative of the average African-American ay rely less on social networks for their job search( Harry who may not have such a racially distinct J. Holzer, 1987)
VOL. 94 NO. 4 BERTRAND AND MULUINATHAN: RACE IN THE LABOR MARKET 997 Percent callback Percent callback for Percent difference for White names African-American names Ratio (D-value) Sample: All sent resumes Chicago Boston Females Females in administrative jobs Females in sales jobs Males Notes: The table reports, for the entire sample and different subsamples of sent resumes, the callback rates for applicants with a White-sounding name (column 1) an an African-American-sounding name (column 2), as well as the ratio (column 3) and difference (column 4) of these callback rates. In brackets in each cell is the number of resumes sent in that cell. Column 4 also reports the p-value for a test of proportion testing the null hypothesis that the callback rates are equal across racial groups. employers rarely, if ever, contact applicants via postal mail to set up interviews. E. Weaknesses of the Experimen~ We have already highlighted the strengths of this experiment relative to previous audit studies. We now discuss its weaknesses. First, our outcome measure is crude, even relative to the previous audit studies. Ultimately, one cares about whether an applicant gets the job and about the wage offered conditional on getting the job. Our procedure, however, simply measures callbacks for interviews. To the extent that the search process has even moderate frictions, one would expect that reduced interview rates would translate into reduced job offers. However, we are not able to translate our results into gaps in hiring rates or gaps in earnings. Another weakness is that the resumes do not directly report race but instead suggest race through personal names. This leads to various sources of concern. First, while the names are chosen to make race salient, some employers may simply not notice the names or not recognize their racial content. On a related note, because we are not assigning race but only race-specific names, our results are not representative of the average African-American (who may not have such a racially distinct name).28 We return to this issue in Section IV, subsection B. Finally, and this is an issue pervasive in both our study and the pair-matching audit studies, newspaper ads represent only one channel for job search. As is well known from previous work, social networks are another common means through which people find jobs and one that clearly cannot be studied here. This omission could qualitatively affect our results if African-Americans use social networks more or if employers who rely more on networks differentiate less by race.29 111. Results A. Is There a Racial Gap in Callback? Table 1 tabulates average callback rates by racial soundingness of names. Included in brackets under each rate is the number of resumes sent in that cell. Row 1 presents our results for the full data set. Resumes with White As Appendix Table A1 indicates, the AfricanAmerican names we use are, however, quite common among African-Americans, making this less of a concern. 29 In fact, there is some evidence that African-Americans may rely less on social networks for their job search (Hany J. Holzer, 1987)