Using biased statistics in hiring makes it more difficult to predict job performance. Photo via Getty Images

The Latin phrase scientia potentia est translates to “knowledge is power.”

In the world of business, there’s a school of thought that takes “knowledge is power” to an extreme. It’s called statistical discrimination theory. This framework suggests that companies should use all available information to make decisions and maximize profits, including the group characteristics of potential hires — such as race and gender — that correlate with (but do not cause) productivity.

Statistical discrimination theory suggests that if there's a choice between equally qualified candidates — let's say, a man and a woman — the hiring manager should use gender-based statistics to the company's benefit. If there's data showing that male employees typically have larger networks and more access to professional development opportunities, the hiring manager should select the male candidate, believing such information points to a more productive employee.

Recent research suggests otherwise.

A peer-reviewed study out of Rice Business and Michigan Ross undercuts the premise of statistical discrimination theory. According to researchers Diana Jue-Rajasingh (Rice Business), Felipe A. Csaszar (Michigan) and Michael Jensen (Michigan), hiring outcomes actually improve when decision-makers ignore statistics that correlate employee productivity with characteristics like race and gender.

Here's Why “Less is More”

Statistical discrimination theory assumes a correlation between individual productivity and group characteristics (e.g., race and gender). But Jue-Rajasingh and her colleagues highlight three factors that undercut that assumption:

  • Environmental uncertainty
  • Biased interpretations of productivity
  • Decision-maker inconsistency

This third factor plays the biggest role in the researchers' model. “For statistical discrimination theory to work,” Jue-Rajasingh says, “it must assume that managers are infallible and decision-making conditions are optimal.”

Indeed, when accounting for uncertainty, inconsistency and interpretive bias, the researchers found that using information about group characteristics actually reduces the accuracy of job performance predictions.

That’s because the more information you include in the decision-making process, the more complex that process becomes. Complex processes make it more difficult to navigate uncertain environments and create more space for managers to make mistakes. It seems counterintuitive, but when firms use less information and keep their processes simple, they are more accurate in predicting the productivity of their hires.

The less-is-more strategy is known as a “heuristic.” Heuristics are simple, efficient rules or mental shortcuts that help decision-makers navigate complex environments and make judgments more quickly and with less information. In the context of this study, published by Organization Science, the heuristic approach suggests that by focusing on fewer, more relevant cues, managers can make better hiring decisions.

Two Types of Information "Cues"

The “less is more” heuristic works better than statistical discrimination theory largely because decision makers are inconsistent in how they weight the available information. To factor for inconsistency, Jue-Rajasingh and her colleagues created a model that reflects the “noise” of external factors, such as a decision maker’s mood or the ambiguity of certain information.

The model breaks the decision-making process into two main components: the environment and the decision maker.

In the environment component, there are two types of information, or “cues,” about job candidates. First, there’s the unobservable, causal cue (e.g., programming ability), which directly relates to job performance. Second, there's the observable, discriminatory cue (e.g., race or gender), which doesn't affect how well someone can do the job but, because of how society has historically worked, might statistically seem connected to job skills.

Even if the decision maker knows they shouldn't rely too much on information like race or gender, they might still use it to predict productivity. But job descriptions change, contexts are unstable, and people don’t consistently consider all variables. Between the inconsistency of decision-makers and the environmental noise created by discriminatory cues, it’s ultimately counterproductive to consider this information.

The Bottom Line

Jue-Rajasingh and her colleagues find that avoiding gender- and race-based statistics improves the accuracy of job performance predictions. The fewer discriminatory cues decision-makers rely on, the less likely their process will lead to errors.

That said: With the advent of AI, it could become easier to justify statistical discrimination theory. The element of human inconsistency would be removed from the equation. But because AI is often rooted in biased data, its use in hiring must be carefully examined to prevent worsening inequity.

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This article originally ran on Rice Business Wisdom based on research by Rice University's Diana Jue-Rajasingh, Felipe A. Csaszar (Michigan) and Michael Jensen (Michigan). For more, see Csaszar, et al. “When Less is More: How Statistical Discrimination Can Decrease Predictive Accuracy.”

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NASA names new chief astronaut based in Houston

new hire

NASA has a new chief astronaut. Scott Tingle, stationed at the space agency’s Johnson Space Center in Houston, assumed the post Nov. 10.

Tingle succeeds NASA astronaut Joe Acaba, who had been chief astronaut since February 2023. Acaba now works on the staff of the Johnson Space Center’s director.

As chief astronaut, Tingle runs NASA’s Astronaut Office. His job includes developing astronauts’ flight crew operations and assigning crews for space missions, such as Artemis missions to the moon.

Tingle, a former captain in the Navy, was named a NASA astronaut candidate in 2009. He has logged over 4,500 flight hours in more than 50 aircraft.

Tingle was a flight engineer aboard the International Space Station, where he spent 168 days in orbit during two expeditions that launched in December 2017. Since returning to Earth, he has held various roles in the Astronaut Office, including mission support, technical leadership and crew readiness.

Before joining NASA, Tingle worked in El Segundo, California, on the technical staff of The Aerospace Corp., a nonprofit that supports U.S. space programs.

Tingle recalls expressing his desire to be an astronaut when he was 10 years old. It took him four tries to be accepted by NASA as an astronaut candidate.

“The first time I figured it was kind of too early. The second application, they sent out some feelers, and that was about it. Put in my third application, and got a couple of calls, but it didn’t quite happen,” Tingle said in an article published on the website of Purdue University, his alma mater.

ExxonMobil officially pauses plans for $7B Baytown hydrogen plant

Change of Plans

As anticipated, Spring-based oil and gas giant ExxonMobil has officially paused plans to build a low-hydrogen plant in Baytown, Chairman and CEO Darren Woods told Reuters in late November.

“The suspension of the project, which had already experienced delays, reflects a wider slowdown in efforts by traditional oil and gas firms to transition to cleaner energy sources as many of the initiatives struggle to turn a profit,” Reuters reported.

Woods signaled during ExxonMobil’s second-quarter earnings call that the company was weighing whether it would move forward with the proposed $7 billion plant.

The Biden-era Inflation Reduction Act created a new 10-year incentive, the 45V tax credit, for production of clean hydrogen. But under President Trump’s "One Big Beautiful Bill Act," the window for starting construction of low-carbon hydrogen projects that qualify for the tax credit has narrowed. The Inflation Reduction Act mandated that construction start by 2033. But the Big Beautiful Bill switched the construction start time to early 2028.

“While our project can meet this timeline, we’re concerned about the development of a broader market, which is critical to transition from government incentives,” ExxonMobil Chairman and CEO Darren Woods said during the company’s second-quarter earnings call.

Woods had said ExxonMobil was figuring out whether a combination of the 45Q tax credit for carbon capture projects and the revised 45V tax credit would enable a broader market for low-carbon hydrogen.

“If we can’t see an eventual path to a market-driven business, we won’t move forward with the [Baytown] project,” Woods said.

“We knew that helping to establish a brand-new product and a brand-new market initially driven by government policy would not be easy or advance in a straight line,” he added.

ExxonMobil announced in 2022 that it would build the low-carbon hydrogen plant at its refining and petrochemical complex in Baytown. The company has said the plant is slated to go online in 2027 and 2028.

ExxonMobil had said the Baytown plant would produce up to 1 billion cubic feet of hydrogen per day made from natural gas, and capture and store more than 98 percent of the associated carbon dioxide. The plant would have been capable of storing as much as 10 million metric tons of CO2 per year.

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This article originally appeared on EnergyCapitalHTX.com; it was updated to include new information about the plant in December 2025.

8 can't-miss Houston business and innovation events for December

where to be

Editor's note: Houston’s innovation scene is loading up the calendar before the holidays. From climatetech pitch days to the return of favorite festive shindigs, here's what not to miss and how to register. Please note: this article may be updated to include additional event listings.

Dec. 3 — SouthWest-Midwest National Pediatric Device Innovation Consortium

This annual event brings together members, colleagues and guests of the FDA-supported pediatric consortium who are dedicated to assisting device innovators throughout the lifecycle in delivering innovative solutions to patients. Featured speakers include Dr. Danielle Gottlieb from Le Bonheur Children's Hospital, Balakrishna Haridas from Texas A&M University and Dr. Chester Koh from Texas Children’s Hospital.

This event is Wednesday, Dec. 3, from 3:30-8 p.m. at Texas A&M EnMed Tower. Register here.

Dec. 4 — Resiliency & Adaptation Sector Pitch Day: Scaling Solutions to Address Climate Disruption

Join innovators, industry leaders, investors and policymakers as they explore breakthrough climate and energy technologies at Greentown's latest installment of its Sector Pitch Day series, focused on resiliency and adaptation. Hear from Adrian Trömel, Chief Innovation Officer at Rice University; Eric Willman, Executive Director of the Rice WaTER Institute; pitches from 10 Greentown startups and more.

This event is Thursday, Dec. 4, from 1-3:30 p.m. at the Ion. The Ion Holiday Block Party follows. Register here.

Dec. 4 — The Ion District Holiday Block Party

The Ion District, Rice Alliance and Greentown Labs will celebrate the season during the Ion District Holiday Block Party. Expect to find local bites, drinks, music and meaningful connections across Houston’s innovation ecosystem. Guests are invited to participate in Operation Love’s holiday toy drive supporting local families.

This event is Thursday, Dec. 4, from 4-7 p.m. Register here.

Dec. 8 — Pumps & Pipes Annual Event 2025

The annual gathering brings together cross-industry leaders in aerospace, energy and medicine for engaging discussions and networking opportunities. Connor Grennan, Chief AI Architect at the NYU Stern School of Business, will present this year's keynote address, entitled "Practical Strategies to Increase Productivity." Other sessions will feature leaders from Cena Research Institute, NASA Ames Research Center, ExxonMobil, Southwest Airlines and more.

This event is Monday, Dec. 8, from 8 a.m.-5 p.m., at TMC Helix Park. Register here.

Dec. 9 — Jingle and Mingle

Don your ugliest sweater and snap a pic with Startup Santa! Bayou City Startups, Rocket Network, Founder Institute and Energytech Nexus are bringing back their popular Jingle Mingle for the third year. Network and celebrate with founders, community stakeholders and others in Houston's innovation scene. Donations to the Houston Food Bank are encouraged in place of tickets.

This event is Tuesday, Dec. 9, from 5-7 p.m., at the Solarium in Midtown. Register here.

Dec. 9 — European Innovation Spotlight

Celebrate European cooperation and innovation with the European Innovation Council during an exclusive demo night and networking event at Greentown Labs. Hear from 15 EIC-backed founders supported by the European Union with top-class climatetech technologies, listen to a fireside chat and engage in a networking event following the pitches.

This event is Tuesday, Dec. 9, from 4:30-7 p.m., at the Ion. Register here.

Dec. 9-10 — Energy LIVE

Energy LIVE is Reuters Events' flagship ConfEx that brings the full energy ecosystem together under one roof to solve the industry's most urgent commercial and operational challenges. The event will feature 3,000-plus senior executives across three strategic stages, a showcase of 75-plus exhibitors and six strategic content pillars.

This event is Dec. 9-10 at NRG Park. Register here.

Dec. 15 — Innov8 Hub Pitch Day

Hear pitches from members of the latest Innov8 Hub Innovators to Founders cohort, which empowers academic scientists and innovators to become successful startup founders. Meet and network with the founders over light bites and drinks at a reception following the pitch competition.

This event is Monday, Dec. 15, at the Innovation Center at UH Technology Bridge (Bldg. 4). Register here.