The financial consequences of saying "black" versus "African-American"

The study’s most striking findings shed light on the racial biases undergirding the professional world. Even seemingly innocuous details on a resume, it appears, can tap into recruiters’ biases. A job application might mention affiliations with groups such as the “Wisconsin Association of African-American Lawyers” or the “National Black Employees Association,” the names of which apparently have consequences—and are also beyond their members’ control.

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In one of the study’s experiments, subjects were given a brief description of a man from Chicago with the last name Williams. To one group, he was identified as “African-American,” and another was told he was “Black.” With little else to go on, they were asked to estimate Mr. Williams’s salary, professional standing, and educational background.

The “African-American” group estimated that he earned about $37,000 a year and had a two-year college degree. The “Black” group, on the other hand, put his salary at about $29,000, and guessed that he had only “some” college experience. Nearly three-quarters of the first group guessed that Mr. Williams worked at a managerial level, while 38.5 percent of the second group thought so.

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