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  • Journal of Accounting Research

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

By: Jung Ho Choi, Joseph Pacelli, Kristina M. Rennekamp and Sorabh Tomar
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    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 U.S. 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.

    Keywords

    Diversity; Job Search; Employees; Corporate Disclosure

    Citation

    Choi, Jung Ho, Joseph Pacelli, Kristina M. Rennekamp, and Sorabh Tomar. "Do Job Seekers Value Diversity Information? Evidence from a Field Experiment and Human Capital Disclosures." Journal of Accounting Research (forthcoming). (Pre-published online February 3, 2023.)
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    About The Author

    Joseph Pacelli

    Accounting and Management
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