Socioeconomic Status and Diversity in Accounting and Finance

• In Event: Diversity and Governmental Accounting

Abstract

Purpose – To investigate if household characteristics of youth are associated with choosing accounting or finance as a profession and if they vary for minorities. In other words, is there a relationship between socioeconomic factors of youth and working in accounting or finance? How is this relationship different by ethnicity?
Design/methodology/approach – Data were from rounds 1, 15, and 17 of the National Longitudinal Survey of Youth 1997 (NLSY97). Using Holden’s conceptual framework for how the parent-child processes affect a child’s trajectory, three logistic regressions were performed to investigate the relationship between an accounting or finance profession and socioeconomic factors of youth.
Findings – Those whose father had a college degree were more likely to have an occupation in accounting or finance. Household income of youth was significantly positively related to the likelihood of having an occupation in accounting or finance as an adult. Ethnicity was not related to having an occupation in accounting or finance.
Practical implications – Universities, employers, and professional associations must work together to develop outreach programs for minority students and their parents in order for them to learn about career and earnings opportunities in the professions.
Originality/value – The findings show that lower income and educational attainment, rather than ethnicity itself, is preventing minorities from having access to role models in the professions. This lack of role models is preventing minorities from learning about career opportunities in accounting and finance.
Keywords - Diversity, accounting, finance.

Authors

• April R Poe, University of the Incarnate Word

• Alicia Rubio, University of the Incarnate Word