Promotions and Group Identity

Michal Ďuriník, Hodaka Morita, Maroš Servátka and Le Zhang

MPRA Paper from University Library of Munich, Germany

Abstract: How does group identity influence promotion decisions and what impact does it have on the performance of organizations through promotions? We provide answers based on two experiments in which we identify the effect of group identity on the employers’ preferences regarding whom to promote, their expectations of the post-promotion effort of promoted and non-promoted workers, and the post-promotion effort itself. In both experiments, we find strong evidence of group identity biasing the employers’ preferences. The observed group identity bias in the promotion decision significantly reduces efficiency. Contributions to the literature on promotions in organizations and discrimination in promotions are discussed.

Keywords: Group identity; in-group favoritism; post-promotion effort; post-promotion productivity; promotion decision (search for similar items in EconPapers)
JEL-codes: C91 J7 M50 (search for similar items in EconPapers)
Date: 2023-11-30
New Economics Papers: this item is included in nep-cbe, nep-cdm, nep-exp and nep-lma
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:119389

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