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A recently published study has uncovered persistent racial discrimination in the hiring practices of some of America’s largest companies.
According to a report published by The New York Times, researchers submitted 80,000 fictitious resumes to over 100 major U.S. firms and found that employers contacted the presumed white applicants 9.5% more often than the presumed Black applicants, on average.
The study, led by economists Patrick Kline, Evan K. Rose, and Christopher R. Walters, involved creating fake resumes with equivalent qualifications but different personal characteristics — such as names that suggested the applicant’s race and gender. More specifically, the experiment analyzed callbacks and assessed the prevalence of racial bias in hiring practices at more than 100 Fortune 500 Firms.
While the overall findings revealed a concerning level of discrimination, the researchers noted that the extent of bias varied significantly across firms and industries. One key factor in the lack of racial bias at a company was having a human resources department, according to a report published by LinkedIn News.
It’s reported that nearly one-fifth of the companies accounted for nearly half of the racial gap in callback rates.
According to the study’s brief, “The industries that exhibit the most racial discrimination are car and car parts retailers, such as AutoNation and Napa Auto Parts, and other retailers, such as CVS.”
The study also identified 14 companies that demonstrated little to no difference in their callback rates for white and Black applicants — suggesting that some major firms have made progress in addressing racial biases in their hiring processes. According to The New York Times, these firms were:
- Avis Budget Group
- Charter Communications
- Dr. Pepper
- FedEx
- Hilton
- Kohl’s
- Kroger
- Lowe’s
- McLane
- Mondelez International
- Ryder
- Sysco
- Target
- WM
The study serves as a wake-up call for employers to critically examine their hiring practices and implement strategies to counter racial discrimination. By addressing these biases, leading companies can not only contribute to a more equitable job market but also tap into a broader pool of talented candidates — which, in the long run, drives innovation and success.
