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  5. Racial Promotion Gaps

American Economic Review

ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)

Racial Promotion Gaps

  • Deepak Hegde
  • Alexander Ljungqvist
  • Manav Raj
American Economic Review (Forthcoming)

Abstract

We study racial disparities in promotions in a setting in which promotions are formulaic: the US patent office. Using detailed administrative data that allow us to observe who is eligible for promotion when, we document that Black patent examiners experience delays in promotions they are entitled to, slowing their climb to the top of the career ladder by a year and reducing career earnings by 2.9%. Institutional features rule out statistical discrimination with accurate priors. Slow promotions even under Black supervisors argue against taste-based animus. Instead, the patterns fit models of belief-based discrimination.

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