I’ve found that there is more discrimination and less diversity at smaller firms. Has anyone observed something similar?

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I can’t attest to it at the attorney level, but I can say that the smaller firms on the East Coast that I worked for were definitely the ones doing the discriminatory behavior the most.

I think it’s just rampant in the industry though.

Yes

Smaller firms outside major markets a(< 10 attorneys) are going to by definition be less diverse because they have fewer positions on offer.

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