Name-Based Race Discrimination: The Role of Heuristics

Abstract We investigate the extent and underlying mechanisms behind race beliefs on hiring decisions. In an incentivized experiment, workers with names perceived to be Black are 30 percentage points less likely to be hired. Results indicate that race serves as a decision heuristic: large perceived race gaps among candidates lead to faster and more confident decisions, and the race gap in hiring increases by 25% when employers are forced to make quick decisions. Estimates from a drift-diffusion model reveal that most employers initially focus on worker race, but certain employer groups shift their attention to productivity-related attributes when given sufficient time.