Missing Links: Referrer Behavior and Job Segregation

How does referral recruitment contribute to job segregation, and what can organizations do about it? Current theory on network effects in the labor market emphasizes the job-seeker perspective, focusing on the segregated nature of job-seekers’ information and contact networks, and leaves little role for organizational influence. But employee referrals are necessarily initiated from within a firm by referrers. We argue that referrer behavior is the missing link that can help organizations manage the segregating effects of referring. Adopting the referrer’s perspective of the process, we develop a computational model which integrates a set of empirically documented referrer behavior mechanisms gleaned from extant organizational case studies. Using this model, we compare the segregating effects of referring when these behaviors are inactive to the effects when the behaviors are active. We show that referrer behaviors substantially boost the segregating effects of referring. This impact of referrer behavior presents an opportunity for organizations. Contrary to popular wisdom, we show that organizational policies designed to influence referrer behaviors can mitigate most if not all of the segregating effects of referring

The Power of One or Power in Numbers?

This study analyzes the impact of racial/ethnic minority leaders on equity and diversity policies. Previous research finds that minority leaders are associated with reduced inequality, yet the ways in which these leaders impact organizational policies are understudied. Our analysis relies on a unique dataset of corporate practices, CEO race/ethnicity, and board member race/ethnicity in Fortune 500 firms from 2001 to 2010. The authors find that while minority CEOs have minimal impact on equity policies, diverse boards are significantly associated with equitable practices. They conclude that board diversity is critical for shaping corporate practice related to equity and diversity