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Customer Discrimination and Employment OUtcomes: Theory and Evidence from the French Labor Market

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Author Info

  • Pierre-Philippe COMBES

    ()
    (Aix-Marseille University (Aix-Marseille School of Economics), CNRS & EHESS)

  • Bruno DECREUSE

    ()
    (Aix-Marseille University (Aix-Marseille School of Economics), CNRS & EHESS)

  • Morgane LAOUENAN

    ()
    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES) and Aix-Marseille University (Aix-Marseille School of Economics), CNRS & EHESS)

  • Alain TRANNOY

    ()
    (Aix-Marseille University (Aix-Marseille School of Economics), CNRS & EHESS)

Abstract

The paper investigates the link between the over-exposure of African immigrants to unemployment in France and their under-representation in jobs in contact with customers. We build a two-sector matching model with ethnic sector-specifc preferences, economy-wide employer discrimination, and customer discrimination in jobs in contact with customers. The outcomes of the model allow us to build a test of ethnic discrimination in general and customer discrimination in particular. We run the test on French individual data in a cross-section of local labor markets (Employment Areas). Our results show that there is both ethnic and customer discrimination in the French labor market.

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Bibliographic Info

Paper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) with number 2013016.

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Length: 40
Date of creation: 28 Jun 2013
Date of revision:
Handle: RePEc:ctl:louvir:2013016

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Keywords: Discrimination; Matching frictions; Jobs in contact; Ethnic unemployment; Local labor markets;

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References

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Citations

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Cited by:
  1. Gobillon, Laurent & Rupert, Peter & Wasmer, Etienne, 2014. "Ethnic unemployment rates and frictional markets," Journal of Urban Economics, Elsevier, vol. 79(C), pages 108-120.
  2. Morgane Laouénan, 2013. ""Hate at First Sight": Evidence of Consumer Discrimination Against African-Americans in the US," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales), Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) 2013032, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  3. Laouénan, Morgane, 2014. "'Can't Get Enough': Prejudice, Contact Jobs and the Racial Wage Gap in the US," IZA Discussion Papers 8006, Institute for the Study of Labor (IZA).

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