Manager Ethnicity and Employment Segregation

Using nine years of personnel records from a regional grocery store chain in the UnitedStates, this study examines the effect of manager ethnicity on the ethnic composition ofemployment at the firm’s 73 stores. We estimate separate models with store fixed effects forseveral departments and job titles at each store. We first compare the rates at whichHispanic employees are hired under Hispanic and non-Hispanic, white managers, and thenexamine the effects of manager-employee ethnic differences on separations and on transfersbetween stores. We find significant effects of manager ethnicity on hiring patterns in the fourjob positions that are in small departments, but not in the two positions in larger departments.Manager-employee ethnic dissimilarity has no significant effects on transfers, and affectsrates of employee separations in only one case....