"Uncovering Bias: The Impact of Fake Resumes on U.S. Job Applications"

Economists conducted an audit study by sending 80,000 fake resumes to 100 large U.S. companies, revealing that presumed white applicants were contacted 9.5% more often than presumed Black applicants. Some companies, particularly in sales and retail, showed significant bias, while others, such as Lowe’s and Target, exhibited little to no discrimination. The study also found that gender discrimination was rare in entry-level jobs, but when present, biases were larger than those for race. Centralized HR operations, diverse hiring teams, and regulatory scrutiny were associated with reduced bias, while profitable companies were less biased, suggesting that discrimination is detrimental to business.