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First Order Stochastic Dominance and the Measurement of Hiring Discrimination: A ranking extension of correspondence testings with an application to gender and origin

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  • Emmanuel Duguet

    ()
    (ERUDITE - Equipe de Recherche sur l'Utilisation des Données Individuelles Temporelles en Economie - Université Paris XII - Paris Est Créteil Val-de-Marne : EA437 - Université Paris Est Marne-la-Vallée)

  • Loïc Du Parquet

    (GAINS - Groupe d'Analyse des Itinéraires et des Niveaux Salariaux - Université du Maine)

  • Yannick L'Horty

    ()
    (ERUDITE - Equipe de Recherche sur l'Utilisation des Données Individuelles Temporelles en Economie - Université Paris XII - Paris Est Créteil Val-de-Marne : EA437 - Université Paris Est Marne-la-Vallée, TEPP - Travail, Emploi et Politiques Publiques - CNRS : FR3435 - Université Paris Est Marne-la-Vallée)

  • Pascale Petit

    (EPEE - Centre d'Etudes des Politiques Economiques - Université d'Evry-Val d'Essonne)

Abstract

We extend the standard hiring discrimination measure by including the cases where several candidates are invited to the same interview. The new measure considers the order in which the employer will contact the candidates as opposed to considering only whether or not a job applicant is invited to an interview - a practice common in the previous literature. We propose to apply the first order stochastic dominance (FOSD) criterion to the ranking of the candidates, which appears to be especially relevant for hiring discrimination. We show theoretically that FOSD always implies a positive value for the standard discrimination coefficient used in the literature, and that the converse is false. We apply our analysis to a correspondence testing that has been conducted in the Paris region. We sent 8 fictitious candidates with a Master's degree to the same 310 job offers in computing in order to measure gender and origin discrimination. We found that - out of 28 possible comparisons - there are 25 cases of stochastic dominance that we interpret as strong discrimination against some candidates. In our application, the standard discrimination coefficient tends to underestimate the degree of discrimination.

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Paper provided by HAL in its series Working Papers with number halshs-00731005.

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Date of creation: 11 Sep 2012
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Handle: RePEc:hal:wpaper:halshs-00731005

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Related research

Keywords: gender; origin; hiring discrimination; first order stochastic dominance;

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References

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  1. Emmanuel Duguet & Pascale Petit, 2004. "Hiring discrimination in the French financial sector : an econometric analysis on field experiment data," Cahiers de la Maison des Sciences Economiques v04038, Université Panthéon-Sorbonne (Paris 1).
  2. Michael Firth, 1981. "Racial discrimination in the British labor market," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 34(2), pages 265-272, January.
  3. 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.
  4. James J. Heckman, 1998. "Detecting Discrimination," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 101-116, Spring.
  5. Kenney, Genevieve M & Wissoker, Douglas A, 1994. "An Analysis of the Correlates of Discrimination Facing Young Hispanic Job-Seekers," American Economic Review, American Economic Association, vol. 84(3), pages 674-83, June.
  6. David Neumark & Roy J. Bank & Kyle D. Van Nort, 1995. "Sex Discrimination in Restaurant Hiring: An Audit Study," NBER Working Papers 5024, National Bureau of Economic Research, Inc.
  7. Peter Riach & Judith Rich, 2002. "Field experiments of discrimination in the market place," Natural Field Experiments 00328, The Field Experiments Website.
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Cited by:
  1. Anthony Edo & Nicolas Jacquemet & Constantine Yannelis, 2013. "Language Skills and Homophilous Hiring Discrimination: Evidence from Gender- and Racially-Differentiated Applications," Documents de travail du Centre d'Economie de la Sorbonne 13058, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  2. Nicolas Jacquemet, 2013. "Discriminations à l'embauche : quelle ampleur, quelles solutions ?," Post-Print hal-00876436, HAL.

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