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Gender, race, and entrepreneurship: A randomized field experiment on investors

137 点作者 sdan大约 4 年前

17 条评论

jari_mustonen大约 4 年前
From abstract: ” Female entrepreneurs received 9% more interested replies than males pitching identical projects and Asians received 6% more than Whites. Our results suggest that investors do not discriminate against female or Asian entrepreneurs when evaluating unsolicited pitch emails and that future research on investor biases should focus on networks and in-person interactions.”<p>In other words: The preferred results were not found (females are oppressed) so we ignore wrong-think results (males seem to be) and continue to hunt evidence for preferred results elsewhere.
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68020大约 4 年前
As a &#x27;white&#x27; father of 3 who has been unemployed for the past few years I can tell you that this paper is sole crushing. Its a monument to how backwards common perception is to reality. Its a declaration from academia to never stop finding ways at punishing (me, my wife and 3 daughters) for my sin of being born white&#x2F;male&#x2F;pre1990. From what I have seen, people like me are under-represented in most office environments. Next time you are in an office (in NA at least), look around. Who are the black suited MBAs in charge not hiring? Even the abstract of the paper leads me to believe the the universe is a simulation because why else would it want to destroy opportunities for me and my family and simultaneously assuming, and tying to prove in a lab, that I am the modern Satan.
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adflux大约 4 年前
As long as there aren&#x27;t as much women studying all kinds of engineering, you&#x27;re going to see disparaties in the workforce. Lets stop trying to force equal distribution but rather equal opportunity.<p>Funny thing to see is that as a country becomes MORE developed, women tend to be LESS inclined to attend STEM studies.
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dash2大约 4 年前
I wondered why they didn&#x27;t report results for black versus white. Interestingly, they didn&#x27;t run that:<p>&quot;After long and thoughtful consideration, we discarded the idea of assigning African-American names to our fictitious entrepreneurs. First, there has been a concern about the ability to disentangle race and socioeconomic perception by using distinctly African-American names (Fryer and Levitt (2004)). Second, and most importantly, African-American entrepreneurs are woefully underrepresented in high-impact entrepreneurship (less than 1%, see Gompers and Wang (2017)). This poses a substantial challenge for our setup, because even names that are disproportionately likely to be African-American in the general population (such as “Martin Jackson”) may not be perceived as African-American by investors in this context.&quot;<p>It&#x27;s an interesting point, are there any <i>unambiguously</i> African-American names? I wouldn&#x27;t have guessed Martin Jackson was African-American, but I&#x27;m English.
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tinyhouse大约 4 年前
I never understand why classify people on their looks. Talking primarily about the US. There is such a wide spectrum of white people coming from different cultures. Also, you&#x27;re considered Asian if you&#x27;re a Chinese immigrant but also if you were born in the US to Chinese descent let&#x27;s say. The main common thing between the two groups is looks. Same for Africans and African Americans who are both classified as blacks but have very different culture. Then there is the latino group who once the lose their accent and don&#x27;t look so latino anymore they drift to the white group...
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rosmax_1337大约 4 年前
This is not surprising to me. For all I&#x27;ve seen &quot;non-white non-male&quot; is generally given priority in all kinds of areas, certainly in start-up interest. It&#x27;s considered &quot;hip&quot; to associate with these &quot;non-white non-male&quot; groups, irregardless of their actual performance in whatever area they were prioritized. (To a certain extent at least, they can&#x27;t be completely nonperforming) Being able to show that you have included these groups in whatever way your organization works, gives you advantages in press situations foremost, but also in other ways such as meeting arbitrary quotas set by higher-ups and HR dept.s in your organization.<p>This is however, given two equal applications. Such as this study shows. I would be knocking down open doors to state that white men are over represented in the &quot;STEM&#x2F;Entrepreneurship&quot; areas. What needs to be addressed is what the underlying cause is to this over representation. For all I see there are two potential causes:<p>1) Non-white non-males are given less ability to grow in the &quot;STEM&#x2F;Entrepreneurship&quot; fields as students and&#x2F;or children by society. 2) White men are able to outperform those other groups by some inherent quality.<p>Worth noting is also that simply stating 2) as a potential cause of this difference is more or less a hatecrime in most settings, and academia would do well not to touch in attempting to work with that hypothesis if they wish to keep tenure and funding. Nevertheless, 1) seems to be partially disproved by studies just like the one above, showing that white men are in fact given less ability to grow in &quot;STEM&#x2F;Entrepreneurship&quot; areas, as by the bias shown towards the Asian and Female applications.
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tomcooks大约 4 年前
Just like it happens with software development, in some specific contexts nobody needs to know who you are, what you identify with or what you do when naked for your results to be considered worthy of evaluation or compensation. Focus on letting your product shine and be free to be yourself in total privacy, it&#x27;s an advantage many persons unfortunately don&#x27;t have.
throwaway894345大约 4 年前
This paragraph jumps out at me:<p>&gt; For our entrepreneurial email senders, we opted to use distinctively East-Asian (i.e., Asian) and Western-European (i.e., White) last names, both paired with common American first names that are distinctively female or male. Asians are overrepresented in the U.S. venture capital space, relative to their fraction of the U.S. population. Gompers and Wang (2017) report that 11% of U.S. entrepreneurs backed by venture capital firms are Asian, as are 11% of U.S. VCs, compared to 5% of the U.S. labor force. Despite this, past audit studies uniformly find strong discrimination against Asians (see Section 4 for more details). Correspondence studies that look at discrimination against both Asian and Black applicants often find that both groups face similar level of discrimination (e.g., Wood, Hales, Purdon, Sejersen, and Hayllar (2009); Booth, Leigh, and Varganova (2012); and Milkman, Akinola, and Chugh (2012)). This bias extends to Asians who do not appear to be foreigners. For example, Oreopoulos (2011) finds that Asians with English first names, Canadian university degrees, and several years of Canadian work experience get 21% fewer callbacks than similar White Canadian job applicants.<p>That effect seems quite large. Doesn’t that indicate (rather conclusively?) a large amount of pro-Asian bias?
eruci大约 4 年前
6% is within the margin of error.<p>We&#x27;re spending so much time and energy to quantify various &#x27;biases&#x27; ; only to find there is no bias. This is good. We&#x27;re finally living is a post-racial society with no specific group discrimination.<p>Now if western societies can move on from affirmative action policies and all the other nonsense at the top of their daily agenda while China leaves them all in the dust.
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11thEarlOfMar大约 4 年前
I&#x27;d want to know the gender and race of the recipient VCs as well. Did female or Asian VCs have the same response profile as male or white VCs?<p>Apparently, both female and male investors had a slight bias towards female entrepreneurs, pg. 31:<p>&quot;Both VCs and angels are more likely to respond to female entrepreneurs, although the difference is statistically significant only for angels (70% of our sample). Some angels in our sample are less experienced, as gauged by the number of investments they are recorded to have made. These less experienced angels have a statistically significant 13% higher interested reply rate to our female entrepreneurs, while the more experienced angels have an 8% higher reply rate and VCs have a 7% higher rate.&quot;<p>It seems a positive outcome, however, I&#x27;d like to go one &#x27;why&#x27; deeper. Why did the female investors prefer female entrepreneurs (see fig. 2, pg. 29)? Were their reasons different than the male investors&#x27; reasons?<p>Also, why would less experienced investors be more likely to prefer female entrepreneurs than more experienced investors?
tacitusarc大约 4 年前
The author&#x27;s correctly identify the limitation that the research does not account for bias subsequent to meeting the email authors, but as others have pointed out, it does not mention the limitation that they did not send out pitches proportional to the real world. This is an incredibly obvious causal explanation, and puts in a bad light the scientific integrity of the authors. Which is a shame, because their actual study is interesting and seems fairly rigorous.<p>I read through the actual paper to see if they mentioned this limitation somewhere, not just the abstract, and could not find it. If someone else managed to spot some small clause buried in those pages, please mention where.<p>On a different note, why are academic papers so unnecessarily long? There was a lot of repetition in this one.
icare_1er大约 4 年前
Many similar studies have been done and almost always destroy the leftists dogmas about X, Y or Z being oppressed.<p>Belonging to a minority actually appears to boost your chances of being hired (shown by studies leaving, or hiding, the name of the applicants). Being a women in a company with a boss, reduces the gender paygap compared to what it is for freelancers: the more women are on their own (dentists, baker, founder of a sport&#x27;s club, etc...), the bigger the gap compared to the male dentists, bakers, founders of sport&#x27;s club... An interesting fact which leaves a lot of leftists in error 500 mode.
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sanp大约 4 年前
Is there a basis for the positive bias towards Asians and women here? If I have to follow the logic of a lot of statements in this thread perhaps VCs show a positive bias due to experience (better returns)? See <a href="https:&#x2F;&#x2F;www.google.com&#x2F;amp&#x2F;s&#x2F;www.forbes.com&#x2F;sites&#x2F;allysonkapin&#x2F;2019&#x2F;01&#x2F;28&#x2F;10-stats-that-build-the-case-for-investing-in-women-led-startups&#x2F;amp&#x2F;" rel="nofollow">https:&#x2F;&#x2F;www.google.com&#x2F;amp&#x2F;s&#x2F;www.forbes.com&#x2F;sites&#x2F;allysonkap...</a>
bitdizzy大约 4 年前
Since ssrn is like social science arxiv let&#x27;s just throw preprints around. This paper examines the submitted one as well as another.<p><a href="https:&#x2F;&#x2F;arxiv.org&#x2F;abs&#x2F;2010.16084" rel="nofollow">https:&#x2F;&#x2F;arxiv.org&#x2F;abs&#x2F;2010.16084</a><p>This paper examines discrimination based on startup founders&#x27; gender, race, and age by early-stage investors, using two randomized controlled trials with real venture capitalists. The first experiment invites U.S. investors to evaluate multiple randomly generated startup profiles, which they know to be hypothetical, in order to be matched with real, high-quality startups from collaborating incubators. Investors can also donate money to randomly displayed startup teams to show their anonymous support during the COVID-19 pandemic. The second experiment sends hypothetical pitch emails with randomized startups&#x27; information to global venture capitalists and compares their email responses by utilizing a new email technology that tracks investors&#x27; detailed information acquisition behaviors. I find three main results: (i) Investors are biased towards female, Asian, and older founders in &quot;lower contact interest&quot; situations; while biased against female, Asian, and older founders in &quot;higher contact interest&quot; situations. (ii) These two experiments identify multiple coexisting sources of bias. Specifically, statistical discrimination is an important reason for &quot;anti-minority&quot; investors&#x27; contact and investment decisions, which was proved by a newly developed consistent decision-based heterogeneous effect estimator. (iii) There was a temporary, stronger bias against Asian founders during the COVID-19 outbreak, which started to fade in April 2020.
ausbah大约 4 年前
I feel like this study would be more insightful if it looked at how many of these pitches went onto actually receive funding
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teodorlu大约 4 年前
I found the title to be phrased very weakly compared to the abstract.<p>&gt; We study gender and race in high-impact entrepreneurship using a tightly controlled randomized field experiment. We sent out 80,000 pitch emails introducing promising but fictitious start-ups to 28,000 venture capitalists and angels. Each email was sent by a fictitious entrepreneur with randomly assigned gender and race. Female entrepreneurs received 9% more interested replies than males pitching identical projects and Asians received 6% more than Whites. Our results suggest that investors do not discriminate against female or Asian entrepreneurs when evaluating unsolicited pitch emails and that future research on investor biases should focus on networks and in-person interactions.
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ArkanExplorer大约 4 年前
Same thing with job applications:<p>&quot;In an attempt to increase workplace diversity, the Australian public service implemented a .. trial removing all mention of gender and ethnicity from applications.<p>It was found that removing gender from thousands of applications made women less likely to advance through the recruitment process compared to cases where gender was visible.<p>The trial found that a woman&#x27;s name on an application made the candidate 2.9% more likely to get job interviews.<p>Leaders have now been told pause the trials&quot;<p><a href="https:&#x2F;&#x2F;www.abc.net.au&#x2F;news&#x2F;2017-06-30&#x2F;bilnd-recruitment-trial-to-improve-gender-equality-failing-study&#x2F;8664888" rel="nofollow">https:&#x2F;&#x2F;www.abc.net.au&#x2F;news&#x2F;2017-06-30&#x2F;bilnd-recruitment-tri...</a><p>Its counter-productive to institute gender and diversity requirements at (tech) companies, where the core problem is at the fundamental immigration level.<p>For example, 74.5% of H1B migrants to the USA are from India, and 78.4% of them are male:<p><a href="https:&#x2F;&#x2F;www.uscis.gov&#x2F;sites&#x2F;default&#x2F;files&#x2F;document&#x2F;data&#x2F;h-1b-petitions-by-gender-country-of-birth-fy2019.pdf" rel="nofollow">https:&#x2F;&#x2F;www.uscis.gov&#x2F;sites&#x2F;default&#x2F;files&#x2F;document&#x2F;data&#x2F;h-1b...</a><p>If we instituted gender and equality quotas at the migration level - ie. maximum 10% of the total yearly intake from any one country, and maximum 49% males from any one country, then we would a create a much more diverse talent pipeline.
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