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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. Laurent Gobillon & Peter Rupert & Etienne Wasmer, 2013. "Ethnic Unemployment Rates and Frictional Markets," PSE Working Papers halshs-00849074, HAL.
  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) 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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