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Does Competition Induce Hiring Equity ?

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  • Clémence Berson

    ()
    (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris 1 - Panthéon-Sorbonne, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, CEE - Centre d'études de l'emploi - Ministère de l'Enseignement supérieur et Recherche - Ministère du Travail, de l'Emploi et de la Santé)

Abstract

This paper tests the impact of competition on the hiring process in the French retail sector. Following the Becker's theory, higher the competition, lower is discrimination. Using local Herfindhal-Hirschman indexes, a correspondence study ensures to observe how competition affects discrimination. A strong employment gap is observable between French natives and second generation immigrants. Concerning gender, women are favored as cashiers. The impact of competition depends on the target population : competition reinforces preference for women, whereas discrimination due to origin is follows the Becker's theory. However, increasing competition to fight against discrimination is not a solution, as it will enhance bad condition of women in the labor market and an increase of awareness of human resources department to equality of treatment is more efficient.

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Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number halshs-00718627.

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Date of creation: Jan 2012
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Handle: RePEc:hal:cesptp:halshs-00718627

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Keywords: Discrimination; hiring; competition;

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  1. P. Biscourp & X. Boutin & T. Vergé, 2008. "The Effects of Retail Regulations on Prices Evidence form the Loi Galland," Documents de Travail de la DESE - Working Papers of the DESE g2008-02, Institut National de la Statistique et des Etudes Economiques, DESE.
  2. Ashenfelter, Orley & Hannan, Timothy, 1986. "Sex Discrimination and Product Market Competition: The Case of the Banking Industry," The Quarterly Journal of Economics, MIT Press, vol. 101(1), pages 149-73, February.
  3. Black, Sandra E. & Brainerd, Elizabeth, 2002. "Importing Equality? The Impact of Globalization on Gender Discrimination," IZA Discussion Papers 556, Institute for the Study of Labor (IZA).
  4. Judith K. Hellerstein & David Neumark & Kenneth R. Troske, 2002. "Market Forces and Sex Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 37(2), pages 353-380.
  5. repec:tep:teppwp:wp1001 is not listed on IDEAS
  6. Heywood, John S & Peoples, James H, Jr, 1994. "Deregulation and the Prevalence of Black Truck Drivers," Journal of Law and Economics, University of Chicago Press, vol. 37(1), pages 133-55, April.
  7. P. A. Riach & J. Rich, 2002. "Field Experiments of Discrimination in the Market Place," Economic Journal, Royal Economic Society, vol. 112(483), pages 480-518, November.
  8. Marianne Bertrand & Francis Kramarz, 2001. "Does Entry Regulation Hinder Job Creation? Evidence from the French Retail Industry," NBER Working Papers 8211, National Bureau of Economic Research, Inc.
  9. Emmanuel Duguet & Noam Leandri & Yannick L’Horty & Pascale Petit, 2008. "Are young French jobseekers of ethnic immigrant origin discriminated against? A controlled experiment in the Paris area," Documents de recherche 08-06, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
  10. Allain, Marie-Laure & Chambolle, Claire & Vergé, Thibaud, 2008. "La Loi Galland sur les relations commerciales : jusqu'où les réformer ?," Opuscules du CEPREMAP, CEPREMAP, number 13.
  11. Marianne Bertrand & Sendhil Mullainathan, 2003. "Are Emily and Greg More Employable than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination," NBER Working Papers 9873, National Bureau of Economic Research, Inc.
  12. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-61, September.
  13. James Peoples & Lisa Saunders, 1993. "Trucking deregulation and the black/white wage gap," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 47(1), pages 23-35, October.
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Cited by:
  1. Baert, Stijn & Cockx, Bart & Gheyle, Niels & Vandamme, Cora, 2013. "Do Employers Discriminate Less If Vacancies Are Difficult to Fill? Evidence from a Field Experiment," IZA Discussion Papers 7145, Institute for the Study of Labor (IZA).
  2. Jacquemet, Nicolas & Edo, Anthony, 2013. "La discrimination à l’embauche sur le marché du travail français," Opuscules du CEPREMAP, CEPREMAP, number 31.

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