Do Jobseekers Value Diversity Information? Evidence From a Field Experiment and Human Capital Disclosures

Authors

Jung Ho Choi, Stanford Graduate School of BusinessFollow
Joseph Pacelli, Harvard University - Business School (HBS)Follow
Kristina M. Rennekamp, SC Johnson Graduate School of Management; Cornell SC Johnson College of BusinessFollow
Sorabh Tomar, Southern Methodist University (SMU) - Accounting DepartmentFollow

Publication Date

1-31-2023

Abstract

We examine how information about the diversity of a potential employer’s workforce affects individuals’ job-seeking behavior. We embed a field experiment in job recommendation emails from a leading career advice agency in the U.S. The experimental treatment involves highlighting a diversity metric to jobseekers. Our results indicate that disclosing diversity scores in job postings leads jobseekers to click on firms with higher diversity scores, with such effects varying across jobseeker demographics. A follow-up survey provides evidence on potential explanations for why jobseekers value diversity information. We then examine how jobseekers’ preferences for diversity relate to disclosure choices under the U.S. SEC Human Capital Disclosure requirement. We find that firms in industries characterized by higher jobseeker responsiveness to diversity information tend to voluntarily disclose diversity metrics in their 10-Ks under these new disclosure requirements.

Document Type

Article

Keywords

Diversity, Job Search, Human Capital Disclosure, Field Experiment

Disciplines

Accounting

DOI

10.2139/ssrn.4025383

Source

SMU Cox: Accounting (Topic)

Language

English