The Effect of Workplace Gender Diversity on Job Search Decisions

Abstract

A company's ability to compete for talent in the labor market is important because human capital is a key driver of firm value. Many labor market participants claim to use workplace diversity statistics to help them assess their goodness-of-fit with firms, but it is unclear if these statistics actually influence the job offers they accept. We conduct a hypothetical choice experiment using workplace gender diversity disclosures to explore if and how such disclosures change job selection behaviors. We find that labor market participants prefer to accept offers from employers that disclose their workplace gender diversity statistics over those that do not, regardless of whether firms disclose high or low levels of workplace gender diversity. We find that male labor market participants prefer to accept job offers from firms with fewer female coworkers and managers, and they are indifferent towards employers' gender-equality focused charitable giving. Female labor market participants, however, are indifferent towards the gender composition of their coworkers and managers, but they prefer to accept job offers from firms that make more gender-equality focused donations. These findings shed light on important regulatory and managerial decision making regarding how workplace gender diversity disclosures could affect the labor market.

Keywords: Job Search Decision, Human Capital, Disclosure Policy, Gender Diversity