Investing In Diversity

1. Investing In Diversity A Forum for Increased Understanding of Benefits and Incentives for Enhancing Diversity

2. Susan Capalbo Montana State UniversityNicole Ballenger University of WyomingAlex McCalla University of California � DavisWendy Stock Montana State UniversityKitty Smith USDA � ERSSponsored By:Montana State University, University of Wyoming, University of California-Davis, USDA-ERS,The National Science Foundation

9. Diversity Has Economic Value: empirical evidence Countries Lian and Oneal (Econ. Dev.& Cult. Change 1997): �no economic penalty� for (potentially costly) cultural diversity (98 country analysis) Cities/communities Alesina and LaFerrara (NBER 2004): ethnic �fractionalization� has both costs (�conflict of preferences�) and benefits (production effects through innovation and creativity) (broad lit review) Ottaviano and Peri (NBER 2004): wages are positively correlated with share of foreign-born workers (study of 160 U.S. cities)  Firms Lazear (The Economic Journal 1999): global firms capture gains from using complementary factors, which offset costs of combining workers with different cultures, legal systems, and languages Wagner (University of Luneburg 2006): German firms active internationally learn from external sources and generate higher levels of knowledge (patents, new products)

10. Knowledge Production Function: a framework for valuing diversity in engineering Engineering firms are knowledge-producing firms Knowledge outputs: patents, new products/processes, contracts (number, value, variety) Knowledge inputs: numbers of engineers, quality of engineering staff (where they went to school), complementary skills of engineering staff (diversity), other complementary inputs (e.g. computing infrastructure) VMP of labor is enhanced by complementarities among diverse teammates

11. Testable Hypotheses Firms seek diversity to enhance the pool of engineering talent (diversity is positively correlated with larger workforce) Firms with more diverse engineering staffs capture benefits of skill complementarities (diversity is positively correlated with higher levels of innovation, measured by patents, products/process) Firms with more diverse engineering staffs have a more diverse customer base and therefore more growth potential (diversity is positively correlated with more international contracts)

12. Empirical Approaches Anecdotal Use of indicative indicators, such as where firms recruit, their use of specialized benefits and other incentives to attract diverse workers, retention bonuses Econometric (estimation of knowledge production function) Firm surveys (choice experiments?) Ask firms to choose among packets of r�sum�s of recent engineering graduates (for example, see May 2006 AJAE article by Norwood and Henneberry)

13. How to Measure Workforce Diversity as an Input? Heterogeneity: probability that any two employees are from different genders, cultures, races/ethnicities, etc. Exposure: probability that a member of one group (e.g. cultural background) will be teamed (and work with) a member of a different group (e.g. a different cultural background) Captured: probability that an employee participated in a diverse learning environment

19. UC � Davis ARE Ph.D�s 1967- 2005: A First Pass at a Gender Analysis. By Alex F. McCalla. Professor Emeritus, Depart. of Agric. and Resource Econ. University of California, Davis. 07/17/06

20. Summary Statistics 1965 � 2005Program was established in 1965 First 15 years (�65-�79): Granted 75 Ph.D�s; 72 to men, 3 to women- % women 4% Next Decade (�80-�89): Granted 69; 46 to men, 23 to women- % women 33% Next Decade (�90-�99): Granted 70; 47 to men, 23 to women- % women 33% Last 6 years (2000-�05): Granted 51; 35 to men, 16 to women- % women 31%

21. Summary Statistics 1965 � 2005 cont. Total # of PhD�s � 265 To Men � 200: to Women � 65 = 25% Total Employment by sector; Academic/University � 121 (46%) Public Sector � 53 (20%) Private Sector � 24 (9%) Foreign Jobs- outside of NA � 57 (22%) Lost � 10 (4%)

22. Academic Employment- includes Professorial, Research and Administration Total 121- varies sharply by period- Women were hired in 41 academic jobs � 34% of all academic jobs -43% since 1980 BUT is 63 % of total female PhD jobs (41/65)

23. Public Sector �US Govt, WB, IARCs, State Gov Total Placements in Public sector: 53 Women received 14/53 jobs � 26% BUT is only 22% of female placements (14/65)

24. Private Sector Including Non- ProfitsForeign Jobs and Lost Souls Private sector � hired 25 PhD�s (9% of jobs) but only 2 were women, 3% of total female PhD�s Foreign Jobs � employment outside of North America�57 jobs (22% of jobs), likewise only 2 were women, 3% of total female PhD�s Lost Souls � we don�t know where 10 of our graduates are ( 4% total) and 3 of these are women, 5% of total female PhD�s

26. Distribution Females & Males � PhD�s Granted & Sector of Employment 1980-1999

27. UCD Distribution of Employment by Gender � 1980-1999

28. Distribution Excluding Foreign and Lost � UCD 1980- 1999

29. Some Tentative Conclusions Vast Majority of Female PhD�s have been placed domestically - 60/65 They have been placed in a higher proportion of Academic jobs than their share of PhD�s-34% vs 25%, 43% since 1980 63% of all female placements have been in Academia, 89% in Academia + Public Sector �80-�99- 29 University Jobs � at least 22 remain Professorial; 2 Prof. Res; 1 Admin; and 3 Unknown- still almost 50% academic

30. Some Tentative Conclusions-cont. Some had to persist a long time to obtain a Professorial Job, some had to change departments, several left Academia for the Public sector and one notable female left the Public sector to join the Professorial ranks A few dropped out but same true for males A female was the 2nd Davis PhD to be named a Fellow, 6 more males have followed My original hypothesis was that women PhD�s did less well in Academia � apparently not true for Davis Female PhD�s

32. Economics Ph.D.s Earned by Women Concern Career Advancement slower among women �Leaky Pipeline" for ? in economics

33. The Good News Females � Males obtaining financial aid attrition time-to-degree obtaining full-time permanent employment employment sector distribution starting salary job satisfaction salary growth first 6 post-Ph.D. years*

34. The Bad NewsTime Allocations Research ? ? rewards in tenure and promotion ? difference could explain some �leakiness�

35. The Bad News Marriage Penalties Getting married post-Ph.D. associated with ? : 23 % ? 6th-year salaries ? : 35 % ? 6th-year salaries

36. Marriage Penalties Tied Mover Effect ? report that their partner�s job opportunities were important for their own job choice at rate almost twice that of ? ? who married half as likely as their counterparts to remain with the same employer The Bad News

37. ERS Economist Staff by Gender, 1982, 1993, & 2006

38. Percent Female Economists, by Grade, 2006

39. www.wepan.org Women in Engineering Programs and Advocates Network: engineering a diverse future for the engineering profession. www.aaea.org/sections/cwae/ Committee on Women in Agricultural Economics. www.idealist.org Site devoted to connecting the thousands of worldwide human rights groups and organizations. www.hrc.org/ Human Rights Campaign: working for lesbian, gay, bisexual, and transgender equal rights. www.nsf.gov/od/oia/activities/ceose/ NSF Committee on Equal Opportunities in Science and Engineering. www.hrw.org Human Rights Watch: dedicated to protecting the human rights of people around the world. www.eeoc.gov/ U.S. Equal Employment Opportunity Commission.