Do Jobseekers Value Diversity Information? A Mixed Methods Investigation

57 Pages Posted: 9 Feb 2022 Last revised: 26 Apr 2022

See all articles by Jung Ho Choi

Jung Ho Choi

Stanford University Graduate School of Business

Joseph Pacelli

Harvard Business School

Kristina M. Rennekamp

SC Johnson Graduate School of Management; Cornell SC Johnson College of Business

Sorabh Tomar

Southern Methodist University (SMU) - Accounting Department

Date Written: April 25, 2022

Abstract

We examine how information about the diversity of a potential employer’s workforce affects individuals’ job-seeking behavior, and whether workers’ preferences explain corporate disclosure decisions. We embed a field experiment in job recommendation emails sent from a leading career advice agency in the U.S. The experimental treatment involves highlighting a diversity metric to jobseekers. Studying 178,862 unique jobseekers, we find that disclosing diversity scores in job postings increases the click-through rate and willingness-to-pay of jobseekers for firms with higher diversity scores. To better understand how heterogeneity among jobseekers affects their attitudes towards diversity information, we conduct a follow-up survey. The survey evidence indicates that diversity information is more valuable to female jobseekers and people of color. Finally, we document that firms in industries characterized by higher jobseeker responsiveness to diversity information tend to voluntarily disclose diversity metrics in their 10-Ks under new SEC disclosure requirements. Overall, our findings generate important insights regarding jobseekers’ demand for diversity information.

Keywords: Diversity, Job Search, Disclosure, Field Experiment

JEL Classification: M14. J64, D40, D83, M41, C93

Suggested Citation

Choi, Jung Ho and Pacelli, Joseph and Rennekamp, Kristina M. and Tomar, Sorabh, Do Jobseekers Value Diversity Information? A Mixed Methods Investigation (April 25, 2022). SMU Cox School of Business Research Paper No. 22-04, Available at SSRN: https://ssrn.com/abstract=4025383 or http://dx.doi.org/10.2139/ssrn.4025383

Jung Ho Choi (Contact Author)

Stanford University Graduate School of Business ( email )

655 Knight Way
Stanford, CA 94305-5015
United States
(650)721-8434 (Phone)

Joseph Pacelli

Harvard Business School ( email )

Boston, MA 02163
United States

Kristina M. Rennekamp

SC Johnson Graduate School of Management ( email )

Ithaca, NY 14853
United States
607-255-0500 (Phone)

Cornell SC Johnson College of Business ( email )

Ithaca, NY 14850
United States

Sorabh Tomar

Southern Methodist University (SMU) - Accounting Department ( email )

United States

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