To File or Not to File? How EEOC Claims Change with the Economy

Discrimination and sexual harassment are pervasive problems in today’s organizations. Traditionally, individual variables such as justice and power are used to study an employee’s response to discrimination or sexual harassment. In this study, we propose the use of economic variables (unemployment and economic health) to explain when an individual is more likely to make a discrimination or sexual harassment charge. Using monthly data from the U.S. Equal Employment Opportunity Commission on discrimination charges, we find there is strong evidence that U.S. economic conditions play an important role in the number and types of complaints filed.