The Price of Prejudice: Labour Market Discrimination on the Grounds of Gender and Ethnicity
AbstractDespite some progress, there is still evidence of discrimination on the grounds of gender and ethnic or racial origins in OECD labour markets. Field experiments show pervasive ethnic discrimination in many countries. We show indirect cross-country/time-series evidence that, using product market regulation as an instrument, suggests that on average at least 8% of the gender employment gap and a larger proportion of the gender wage gap can be attributed to discrimination. Virtually all OECD countries have enacted anti-discrimination laws in recent decades, and evaluations as well as cross-country analysis suggest that, if well-designed, these laws can be effective in reducing disparities in labour market outcomes. However, enforcement of anti-discrimination legislation is essentially based on victims' willingness to claim their rights. Thus, public awareness of legal rules and their expected consequences (notably, victims' costs and benefits of lodging complaints) is a crucial element of an effective policy strategy to establish a culture of equal treatment. However, legal rules are likely to have more impact if the enforcement is not exclusively dependent on individuals. In this respect, specific agencies may play a key role.
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Date of creation: 2008
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field experiments; employment gaps; gender gaps; anti-discrimination laws;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-09-13 (All new papers)
- NEP-LAB-2008-09-13 (Labour Economics)
- NEP-LTV-2008-09-13 (Unemployment, Inequality & Poverty)
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- de la Rica, Sara & Dolado, Juan J. & García-Peñalosa, Cecilia, 2008.
"On Gender Gaps and Self-fulfilling Expectations: Theory, Policies and Some Empirical Evidence,"
CEPR Discussion Papers
6883, C.E.P.R. Discussion Papers.
- Sara de la Rica & Juan José Dolado & Cecilia García-Peñalosa, 2008. "On gender gaps and self-fulfilling expectations: Theory, policies and some empirical evidence," Working Papers 2008-24, FEDEA.
- de la Rica, Sara & Dolado, Juan José & García-Peñalosa, Cecilia, 2008. "On Gender Gaps and Self-fulfilling Expectations: Theory, Policies and Some Empirical Evidence," IZA Discussion Papers 3553, Institute for the Study of Labor (IZA).
- Sara Rica & Juan Dolado & Cecilia Garcia Peñalosa, 2012. "GINI DP 24: On gender gaps and self-fulfilling expectations: An alternative approach based on paid-for-training," GINI Discussion Papers 24, AIAS, Amsterdam Institute for Advanced Labour Studies.
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