American Economic Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
Racial Promotion Gaps
American Economic Review
(pp. 3721–67)
Abstract
We study racial disparities in promotions in a setting in which promotions are formulaic: the US patent office. Using detailed administrative data that allow us to observe who is eligible for promotion when, we document that Black patent examiners experience delays in promotions they are entitled to, slowing their climb to the top of the career ladder by a year and reducing career earnings by 2.5 percent. Institutional features rule out statistical discrimination with accurate priors. Slow promotions even under Black supervisors argue against taste-based animus. Instead, the patterns fit models of belief-based discrimination.Citation
Hegde, Deepak, Alexander Ljungqvist, and Manav Raj. 2026. "Racial Promotion Gaps." American Economic Review 116 (10): 3721–67. DOI: 10.1257/aer.20231368Additional Materials
JEL Classification
- J15 Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
- J41 Labor Contracts
- J71 Labor Discrimination
- M12 Personnel Management; Executives; Executive Compensation
- M51 Personnel Economics: Firm Employment Decisions; Promotions
- O34 Intellectual Property and Intellectual Capital