Key takeaways
- Customer complaints against minority advisors increase when immigration concerns rise
- This pattern holds even after controlling for advisor performance
- The effect suggests discrimination in complaint behavior
- Social climate affects how customers evaluate professionals
- Minority professionals face headwinds beyond their control
The research question
Does social climate affect how customers evaluate financial professionals? Specifically, do minority financial advisors face more complaints when public concern about immigration increases?
What we found
When immigration becomes a salient public concern, complaints against minority financial advisors increase. This is not because minority advisors perform worse during these periods. The effect persists after controlling for advisor performance and other factors.
The pattern is consistent with discrimination. When immigration anxiety rises, customers become more likely to file complaints against advisors who appear to be immigrants or minorities.
Why this matters
Professional careers are shaped by forces beyond individual performance. Minority professionals face additional scrutiny during periods of social tension. Understanding this dynamic is essential for fair evaluation and career development.
For firms and regulators, this research suggests that complaint patterns should be interpreted carefully. A spike in complaints against minority advisors may reflect social climate rather than professional misconduct.
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