Diversity, discrimination, and performance

Article, Preprint OPEN
Leonard, Jonathan S. ; Levine, David I. (2003)
  • Publisher: eScholarship, University of California
  • Subject: Employee Demographics | Employee Demographics, Race and Gender, Organizational Behavior | Diversity in the Workplace | Race and Gender | Organizational Behavior
    mesheuropmc: human activities | health care economics and organizations | technology, industry, and agriculture
    acm: ComputingMilieux_THECOMPUTINGPROFESSION

Employee diversity may affect business performance both as a result of customer discrimination and as a result of how members of a group work with each other in teams. We test for both channels with data from more than 800 retail stores employing over 70,000 individuals matched to Census data on the demographics of the community. We find little payoff to matching employee demographics to those of potential customers except when the customers do not speak English. Although age diversity does predict lower sales, diversity of race or gender within the workplace does not significantly or substantially affect sales or sales growth.
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