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

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 United States. 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.

Occupational Licensing and Minority Participation in Professional Labor Markets

“…Professional employers are increasingly mentioning diversity, equity, and inclusion objectives in their hiring practices and overall strategies (McKinsey [2020], WorldAtWork [2021], Choi et al [2023]). However, minorities continue to be underrepresented in many high-paying occupations (Bureau of Labor Statistics [2021]).…”