Interfirm racial segregation

Date and country of first publication

1998
United States

Definition

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Interfirm racial segregation refers to the practice of racial segregation between different firms or companies. This means that companies may intentionally segregate their workforce based on race, leading to different racial groups being assigned to different firms or divisions within the same company.

This form of segregation can occur in several ways:

1. Recruitment and hiring: Companies may have biased hiring practices that favor one racial group over another. This can result in certain firms having a predominantly white workforce, while others have a predominantly non-white workforce.

2. Promotion and advancement: Discrimination in promotion and advancement opportunities can contribute to racial segregation between firms. If certain racial groups consistently face barriers to advancement within a company, they may be overrepresented in lower-level positions at certain firms.

3. Segregated workspaces: Some companies may physically separate employees based on race, either through assigning different racial groups to different departments or segregating them within the same workplace. This can lead to limited interaction and communication between different racial groups.

4. Discriminatory policies and practices: Companies may have policies or practices that disproportionately affect certain racial groups, leading to racial segregation between firms. For example, if a company implements a dress code policy that disproportionately affects employees of certain racial backgrounds, those employees may be more likely to seek employment elsewhere.

Overall, interfirm racial segregation is a systemic issue that perpetuates racial inequality and limits diversity and inclusion within the workplace. It is important for companies to actively work towards creating equitable and inclusive environments that promote diversity and equal opportunities for all employees, regardless of their race or ethnicity.

Further reading

Carrington W.J.; Troske K.R. (1998) "Interfirm segregation and the black/white wage gap", Journal of Labor Economics, 16(2), pp. 231-260. University of Chicago Press. DOI: [htttp://doi.org/10.1086/209888 10.1086/209888]

Mouw T. (2002) "Are black workers missing the connection? the effect of spatial distance and employee referrals on interfirm racial segregation", Demography, 39(3), pp. 507-528. Duke University Press. DOI: [htttp://doi.org/10.2307/3088329 10.2307/3088329]