Friends in high places: The effects of social networks on discrimination in salary negotiations

This article tests hypotheses about the effects of social networks on inequ itable salary negotiation outcomes using a U.S. high-technology company's s alary negotiation data for 1985-1995. Analyzing results of 3,062 actual sal ary negotiations, we found that members of racial minority groups negotiate d significantly lower salary increases than majority members, but this effe ct was dramatically reduced when we controlled for social ties to the organ ization. Having a social tie to the organization significantly increased sa lary negotiation outcomes, and minorities were less likely than majority me mbers to have such a social tie.(.)