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IZA Discussion Paper No. 8445
August 2014
The Timing of Preference and Prejudice in Sequential Hiring Games

We model a hiring process in which the candidate is evaluated sequentially by two agents of the firm who each observe an independent signal of the candidate's productivity. We introduce the potential for taste-based discrimination and characterize how one agent's private valuation of the candidate influences the other agent's hiring practices. This influence is often in an offsetting direction and is partially corrective. Yet, this offsetting response can also be large enough that even a high-productivity candidate who is privately favoured by one agent, as may be the case in efforts to increase gender or racial diversity, is less likely to be hired even when the other agent has no preference over private, non-productive attributes.

Communications
Mark Fallak
mark.fallak@liser.lu
+352 585-855-526
World of Labour
Olga Nottmeyer
olga.nottmeyer@liser.lu
+352 585-855-501
Network Coordination
Christina Gathmann
christina.gathmann@liser.lu

The IZA@LISER Network is a global community of scholars dedicated to excellence in labor economics and related fields, now coordinated at the Luxembourg Institute of Socio-Economic Research (LISER) following its transition from Bonn.

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