Lowering the Playing Field: Discrimination through Sequential Spillover Effects

We document a new way that discrimination operates: through sequential spillover effects. Employers in an incentivized resume rating experiment evaluate a sequence of hypothetical candidates with randomly assigned characteristics. Candidates are rated worse when following white men than when following women or minorities. Exploring the mechanisms, we find that spillover effects are inversely related to direct bias. When reviewing high-quality resumes or recruiting in STEM industries, employers directly favor white men and display no spillover effect. For low-quality resumes or non-STEM industries, we find no direct bias but a strong spillover effect. Results suggest that discrimination arises in subtle ways.