Now that the American workforce is more diverse than ever before, what do we do with the differences? The old-school approach is to pretend that racial and ethnic distinctions either do not exist or do not matter—a worldview called color blindness.

As a new psychology study shows, however, “just sweeping race under the rug can be bad for everybody in an organization,” says Victoria C. Plaut, an assistant professor at the University of Georgia and the study’s lead author.

Color blindness...

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