Surviving Hard Times: The Impacts of Corporate Bankruptcy on Workplace Inequality in the United States

Researchers have studied women’s and minorities’ slow promotion into management by focusing on hiring and promotion. However, few have examined how women and minorities secure their managerial positions during corporate restructuring. Corporate bankruptcy is a widespread but understudied form of restructuring that affects employment opportunities. Using longitudinal employment data on 5,569 American workplaces over 23 years, this study finds that bankruptcy shapes racial and gender inequality. The proportion of white women in management increases when firms face bankruptcy, but it decreases when the firms overcome bankruptcy. The proportion of white men in management decreases when firms anticipate bankruptcy and experience subsequent restructuring, but the proportion increases for companies that survive bankruptcy. Representation of minorities declines before, during, and after bankruptcy restructuring. This paper concludes with implications for policy and future research.