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

71 Pages Posted: 9 Feb 2022 Last revised: 21 Jan 2024

See all articles by Jung Ho Choi

Jung Ho Choi

Stanford Graduate School of Business

Joseph Pacelli

Harvard University - Business School (HBS)

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: January 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.

Keywords: Diversity, Job Search, Human Capital 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? Evidence From a Field Experiment and Human Capital Disclosures (January 31, 2023). SMU Cox School of Business Research Paper No. 22-04, Stanford University Graduate School of Business Research Paper No. 4010, Journal of Accounting Research, Forthcoming, Available at SSRN: https://ssrn.com/abstract=4025383 or http://dx.doi.org/10.2139/ssrn.4025383

Jung Ho Choi (Contact Author)

Stanford Graduate School of Business ( email )

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

Joseph Pacelli

Harvard University - Business School (HBS) ( 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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