Racial animosity and Black financial advisor underrepresentation

This study provides compelling evidence for Black underrepresenation in the financial advisor industry. Using a dataset of all U.S. securities-licensed individuals (N = 642,543), we first estimate racial and ethnic composition industry using an algorithm that accounts name, gender, location. Second, use enhanced by commercial vendor to restrict analysis only those identified as working advisors (n 237,435). Google search volume epithet proxy area racism, find greater racism market is associated with underrepresentation. Overall, at individual level 10.1% are (relative 13.4% population). Furthermore, our results suggest market-level animosity toward Blacks negatively representation. We difference 0.9 percentage points when comparing markets highest lowest levels animosity. For average estimated 11.4% representation, increase would represent 7.9%