Discrimination (7): Statistical Discrimination v. Background Checks?

Employers often use background checks before deciding to hire someone. For example, they may check the criminal record of job candidates, their credit scores, health history etc. It’s somewhat understandable although not always acceptable that they are reluctant to hire someone who has been in jail, has been sick for a long time, or has proven to be undisciplined by not paying her bills.

Let’s focus on ex-convicts for the moment. These people have a hard time as it is, sometimes even for no good reason because they shouldn’t have been incarcerated in the first place (I argued here that many countries, and especially the U.S., put too many people in jail). So, allowing employers to use criminal background checks can force ex-convicts into a vicious circle: unable to find a job, they may be forced to go back to crime.

Furthermore, there’s a racial aspect to all of this: in the U.S., African Americans are more likely to be ex-convicts. According to some, this racial discrepancy is precisely the reason to allow criminal background checks. If employers aren’t allowed to check individual candidates, they will resort to statistical discrimination: they know that blacks are more likely to have a criminal record and so they won’t hire any blacks at all, just to be safe.

However, if you espouse this argument in favor of background checks, you essentially want to make things better for one disadvantaged group – blacks, who are generally disadvantaged in employment – by making things worse for an even more disadvantaged group, namely ex-convicts. And that’s assuming that employers will hire more black people if they can use criminal background checks; but assuming that means assuming there’s no racism. Helping a disadvantaged group by harming an even more disadvantaged group is plainly absurd, and you can only fail to see that it’s absurd if you have an overriding fear of government regulation. Regulation should be kept in check but not at any price. I think in this case regulating businesses and outlawing background checks is the appropriate thing to do.

Let’s turn briefly to another type of background check: credit scores.

[M]illions of Americans, as a direct consequence of looking for work, have lower credit scores. … The use of credit checks in employment decisions should be banned. It is a form of discrimination against the poor — the codification and enforcement of class barriers. It is therefore a form of discrimination against those groups more likely to be poor. (source)

It seems there’s a

growing tendency of HR departments to check the credit scores of potential employees apparently deeming this data to be an important predictor of employee behavior. This creates a Catch-22 scenario for the unemployed where you can’t improve your credit score unless you get a job and you can’t get a job until you improve your credit score. (source)

Apart from the obvious fact that credit scores seem to be a type of knowledge that is much less useful for an employer compared to a criminal record – if your house burned down and your credit score is low as a result, does that make you a bad employee? – there’s a real issue for the poor here. They shouldn’t be discriminated against just for being poor. It’s not just a lack of conscientiousness or discipline that can lower your credit score. Back luck and poverty won’t help either. Some say the free market and competition will take care of this: employers stupid enough not to hire good poor people simply because they have a credit problem will lose out. Their competitors who don’t engage in credit checks will hire them, and those businesses will acquire a commercial advantage. I don’t know. Seems awfully optimistic to me.

Discrimination (2): Racial and Gender Discrimination in Adoption

Both straight and gay adoptive parents [in the U.S.] are likely to exhibit racial and sex-based biases when applying to adopt a child, a new study finds. … The authors found that girls are consistently preferred to boys. For non-African-American babies, for example, the probability that a prospective adoptive parent expresses interest in such a baby is 11.5 percent if the baby is a girl and 7.9 percent if the baby is a boy.

Interestingly, in many cultures the preference for biological children runs in the opposite direction, with parents strongly preferring boys instead of girls. The authors suggest that this preference for girls in cases of adoptive children may be because adoptive parents “fear dysfunctional social behavior in adopted children and perceive girls as ‘less risky’ than boys in that respect.”

Additionally, Caucasians and Hispanics are consistently preferred to African-Americans. The probability that a non-African-American baby will attract the interest of an adoptive parent is at least seven times as high as the corresponding probability for an African-American baby. The desire for white babies can be partly, but not fully, explained by the fact that most of the adoptive parents in this data set were white; previous research has found that adoptive parents often want children who look similar to themselves. …

In some ways, gay adoptive parents were more “selective”. Somewhat ironically (at least considering the continued social prejudice against their own family structures), same-sex couples and single women appeared to exhibit even stronger prejudice in favor of girls and against African-American babies than their opposite-sex couple counterparts. (source)

This paper finds that the cost of adopting a black baby needs to be $38,000 lower than the cost of a white baby, in order to make parents indifferent to race. Boys will need to cost $16,000 less than girls (source). The latter point seems to contradict the son preference for live births in many countries (leading even to gendercide).

Racism (9): Race and Employment

Racism expresses itself in different ways, one of which is discrimination in employment:

In 2004, Jean-François Amadieu, a sociologist at the Sorbonne, sent out 500 CVs replying to ads for sales jobs in the Paris region. The CVs were identical except in one regard: some applicants had north African names, and others traditional French ones. The white male French names received five times as many job offers as the north African ones. When Amadieu repeated the exercise in 2006, the ratio was 20:1. (source)

Such examples of racism in employment policy have an impact on unemployment rates across races. Those are very unequal for different races.

And then the numbers exclude those who are in prison. Given that there are 5 times as many blacks behind bars as whites in the U.S., including them in unemployment statistics would make the gap even wider. (And why shouldn’t we include them? They obviously don’t earn a living and can’t provide for their families).

Of course, this difference between the unemployment rates for blacks and whites isn’t entirely caused by direct discrimination in employment decisions. Other elements play a part:

  • Jobs are often concentrated in white suburbs, difficult to reach for blacks who do not own a car.
  • Blacks often can’t rely on networks of family businesses as much as whites or Latinos.
  • Blacks “have been relegated to precarious, low-wage work … at disproportionate rates” (source), making them more vulnerable to recessions, outsourcing and competition from immigrants.
  • Indirect discrimination: if blacks receive substandard education, are less healthy and more poor, then this will affect their employment prospects.