Advanced Search
MyIDEAS: Login

Artifactual Evidence of Discrimination in Correspondence Studies? A Replication of the Neumark Method

Contents:

Author Info

  • Carlsson, Magnus

    ()
    (Linnaeus University)

  • Fumarco, Luca

    ()
    (Linnaeus University)

  • Rooth, Dan-Olof

    ()
    (Linnaeus University)

Abstract

The advocates of correspondence testing (CT) argue that it provide the most clear and convincing evidence of discrimination. The common view is that the standard CT can identify what is typically defined as discrimination in a legal sense – what we label total discrimination in the current study –, although it cannot separate between preferences and statistical discrimination. However, Heckman and Siegelman (1993) convincingly show that audit and correspondence studies can obtain biased estimates of total discrimination – in any direction – if employers evaluate applications according to some threshold level of productivity. This issue has essentially been ignored in the empirical literature on CT experiments until the appearance of the methodology proposed by Neumark (2012). He shows that with the right data and an identifying assumption, with testable predictions, this method can identify total discrimination. In the current paper we use this new method to reexamine a number of already published correspondence studies to investigate if their estimate of total discrimination is affected by group differences in variances of unobservable characteristics. We also aim at improving the general understanding of to what extent the standardization level of job applications is an issue in empirical work. We find that the standardization level of the job applications being set by the experimenter appear to be a general issue in correspondence studies which must be taken seriously.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://ftp.iza.org/dp7619.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7619.

as in new window
Length: 45 pages
Date of creation: Sep 2013
Date of revision:
Handle: RePEc:iza:izadps:dp7619

Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org

Order Information:
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Email:

Related research

Keywords: correspondence studies; discrimination;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Derek A. Neal & William R. Johnson, 1995. "The Role of Pre-Market Factors in Black-White Wage Differences," NBER Working Papers 5124, National Bureau of Economic Research, Inc.
  2. Rooth, Dan-Olof, 2010. "Automatic associations and discrimination in hiring: Real world evidence," Labour Economics, Elsevier, vol. 17(3), pages 523-534, June.
  3. Borghans, Lex & Duckworth, Angela Lee & Heckman, James J. & ter Weel, Bas, 2008. "The Economics and Psychology of Personality Traits," IZA Discussion Papers 3333, Institute for the Study of Labor (IZA).
  4. Oettinger, Gerald S, 1996. "Statistical Discrimination and the Early Career Evolution of the Black-White Wage Gap," Journal of Labor Economics, University of Chicago Press, vol. 14(1), pages 52-78, January.
  5. Claudia Goldin & Cecilia Rouse, 1997. "Orchestrating Impartiality: The Impact of "Blind" Auditions on Female Musicians," NBER Working Papers 5903, National Bureau of Economic Research, Inc.
  6. Kate Antonovics & Peter Arcidiacono & Randall Walsh, 2005. "Games and Discrimination: Lessons From The Weakest Link," Journal of Human Resources, University of Wisconsin Press, vol. 40(4), pages 918-947.
  7. 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).
  8. John Knowles & Nicola Persico & Petra Todd, . "Racial Bias in Motor Vehicle Searches: Theory and Evidence," Penn CARESS Working Papers 5940d5c4875c571776fb29700, Penn Economics Department.
  9. 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.
  10. Baldini, Massimo & Federici, Marta, 2011. "Ethnic discrimination in the Italian rental housing market," Journal of Housing Economics, Elsevier, vol. 20(1), pages 1-14, March.
  11. Joseph G. Altonji & Charles R. Pierret, 1997. "Employer Learning and Statistical Discrimination," NBER Working Papers 6279, National Bureau of Economic Research, Inc.
  12. Michael Ewens & Bryan Tomlin & Liang Choon Wang, 2012. "Statistical Discrimination or Prejudice? A Large Sample Field Experiment," Development Research Unit Working Paper Series 23-12, Monash University, Department of Economics.
  13. John A. List, 2004. "The Nature and Extent of Discrimination in the Marketplace: Evidence from the Field," The Quarterly Journal of Economics, MIT Press, vol. 119(1), pages 49-89, February.
  14. Ben Jann, 2008. "The Blinder–Oaxaca decomposition for linear regression models," Stata Journal, StataCorp LP, vol. 8(4), pages 453-479, December.
  15. Ali M. Ahmed & Lina Andersson & Mats Hammarstedt, 2010. "Can Discrimination in the Housing Market Be Reduced by Increasing the Information about the Applicants?," Land Economics, University of Wisconsin Press, vol. 86(1), pages 79-90.
  16. Peter Riach & Judith Rich, 2002. "Field experiments of discrimination in the market place," Natural Field Experiments 00328, The Field Experiments Website.
  17. Magnus Carlsson & Dan-Olof Rooth, 2012. "Revealing taste-based discrimination in hiring: a correspondence testing experiment with geographic variation," Applied Economics Letters, Taylor & Francis Journals, vol. 19(18), pages 1861-1864, December.
  18. Levitt, Steven D, 2004. "Testing Theories of Discrimination: Evidence from Weakest Link," Journal of Law and Economics, University of Chicago Press, vol. 47(2), pages 431-52, October.
  19. Carlsson, Magnus & Rooth, Dan-Olof, 2007. "Evidence of ethnic discrimination in the Swedish labor market using experimental data," Labour Economics, Elsevier, vol. 14(4), pages 716-729, August.
  20. Magnus Carlsson, 2010. "Experimental Evidence of Discrimination in the Hiring of First- and Second-generation Immigrants," LABOUR, CEIS, vol. 24(3), pages 263-278, 09.
  21. Kenneth J. Arrow, 1998. "What Has Economics to Say about Racial Discrimination?," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 91-100, Spring.
  22. Fershtman, C. & Gneezy, U., 2000. "Discrimination in a Segmented Society: an Experimental Approach," Papers 2000-9, Tel Aviv.
  23. Cornelißen, Thomas, 2005. "Standard errors of marginal effects in the heteroskedastic probit model," Hannover Economic Papers (HEP) dp-320, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
  24. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
  25. Kate Antonovics & Brian G. Knight, 2009. "A New Look at Racial Profiling: Evidence from the Boston Police Department," The Review of Economics and Statistics, MIT Press, vol. 91(1), pages 163-177, February.
  26. James J. Heckman, 1998. "Detecting Discrimination," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 101-116, Spring.
  27. Ayres, Ian & Siegelman, Peter, 1995. "Race and Gender Discrimination in Bargaining for a New Car," American Economic Review, American Economic Association, vol. 85(3), pages 304-21, June.
  28. Harvey, A C, 1976. "Estimating Regression Models with Multiplicative Heteroscedasticity," Econometrica, Econometric Society, vol. 44(3), pages 461-65, May.
  29. 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.
  30. 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.
  31. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-61, September.
  32. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
  33. Klumpp, Tilman & Su, Xuejuan, 2013. "Second-order statistical discrimination," Journal of Public Economics, Elsevier, vol. 97(C), pages 108-116.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp7619. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.