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Making the Elite: Top Jobs, Disparities, and Solutions

Chicago, USA 27 June 2024 – 29 June 2024

Soumitra Shukla (Federal Reserve)

A7 Labor Markets
Chair: Heski Bar-Isaac
Room 0023
Economics / Other

Abstract

This paper quantifies the role of “cultural fit” in determining access to elite jobs. Using personnel data from elite U.S. and European multinational corporations hiring in India, this paper shows that about 90% of the hiring disparities by caste are due to subjective assessments of “fit.” Caste disparities in hiring outcomes are not aligned with job ability, as disadvantaged castes often have better job performance once hired: they have higher promotion rates not only on average but also among the most selective jobs. I discuss the implications of these findings for better understanding the economic behavior underlying elite hiring outcomes and motivating policies to reduce socioeconomic disparities in access to elite jobs.