Race differences in termination at work: The role of educational inequality

Prior research has demonstrated that race, at least to some extent, is related to employment decisions such as selection and performance appraisals. However, little prior research has addressed the impact of race on employment termination. The current study investigates whether race is related to employment termination and highlights the importance of education, an important component of human capital, in understanding racial differences in termination. Results based on 548 employees from a large hotel chain indicate that race is related to termination; however, race is not predictive of termination when education is included in the regression analysis as a predictor. These findings support the notion that a societal level variable (i.e., education) is an important factor in reducing racial inequality in employment practices.