In 2004, two economists published a landmark study measuring discrimination in the labor market by applying to real job openings with fictitious applicants whose names signaled different genders or races. They found clear evidence of discrimination: White men and women received 50% more callbacks than Black men and women. Recently, Berkeley researchers used the same methodology to compare racial and gender discrimination across large U.S. employers.
However, a key question remains. In today’s corporate world, where there’s pressure to increase diversity in fields historically dominated by white men, are companies still discriminating against women and underrepresented minorities in hiring decisions?
Stark realities
A new study from the University of North Carolina at Chapel Hill sheds light on this by examining hiring discrimination in software engineering, a field under intense pressure to increase diversity. This pressure is grounded in stark realities: at Meta, women make up less than 26% of the technical workforce; at Google, less than 28%; and at Apple, less than 25%. Black workers are even more underrepresented, comprising less than 6% at these companies. Women and Black workers become even scarcer as seniority increases.
The new study finds that pressures to diversify are influencing discrimination patterns in unexpected ways. Employers still favor white men for early-career positions despite the push for diversity. However, for senior roles, Black men and women face no more discrimination than white men, and white women are even preferred.
The researchers had expected Black women, Black men, and white women to face discrimination, especially when applying for higher-level positions, due to prevalent gender and racial stereotypes in software engineering. Instead, they found that discrimination decreases as job level increases.
“There are so few women and racial minorities in software engineering, especially at higher levels,” the researchers explain. “This scarcity makes those who do apply valuable for their diversity contributions, reducing discrimination. Additionally, decision-makers are eager to hire ‘diverse’ applicants for senior roles to enhance the company’s image.”
Diversity commodification
This process, called diversity commodification, treats diversity as a valued commodity, creating a competitive market for diverse candidates.
The researchers submitted over 11,000 resumes to software engineering job postings in the 40 largest U.S. metro areas. The resumes signaled gender and race through names and applied for both junior and senior positions. They found that for junior roles, white men were preferred, with Black men receiving 33.5% fewer callbacks, Black women 25.9% fewer, and white women 16.8% fewer compared to white men. For senior roles, however, white men had no advantage, and white women were preferred over all other groups, while Black men and women had callback rates comparable to white men.
In-depth interviews with over 60 recruiters revealed that decision-makers valued women and people of color for their diversity contributions, especially at senior levels where demand for diversity is higher and supply lower.
The researchers found that white women were most preferred for senior roles because, in a field dominated by white and Asian men, any diversity is an improvement. White women, Black men, and Black women all contribute to diversity, but companies perceive white women as posing fewer disruptions and risks.
Need for an update
This study suggests that our understanding of gender and racial discrimination in hiring needs updating, particularly in contexts with strong pressures to diversify.
“A recruiter can see a woman’s resume and think she might lack strong technical skills but also recognize her diversity contribution,” the researchers say. “Understanding both factors
is crucial for understanding discrimination patterns under diversity pressures.”
The researchers hope that their findings will prompt further investigation into how diversity initiatives impact the work lives of women and minority workers. They emphasize the need for a nuanced approach to diversity in hiring, one that considers both the potential benefits and drawbacks of treating diversity as a commodity.
In essence, while pressure to diversify may reduce discrimination at senior levels, it also introduces complexities in how diversity is valued and perceived within organizations. This instrumental approach to diversity can have significant implications for the careers and experiences of women and workers of color in the tech industry and beyond.
