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Modelling Exposure to Risk of Experiencing Discrimination in the Context of Endogenous Ethnic Identification

Author

Listed:
  • Hunter, Boyd

    (Australian National University)

  • Howlett, Monica

    (Australian National University)

  • Biddle, Nicholas

    (Australian National University)

Abstract

Gneezy et al. (2012) uses attribution theory from the psychology literature to argue that when the object of discrimination is a matter of choice (e.g. sexual orientation), observed discrimination may motivated by animus, which exacerbates or intensifies the emotional response to the object of discrimination. This paper builds on this insight based on the understanding that ethnicity is largely a social construct where individuals can often choose to identify with an ethnic group that may be the object of discrimination. A theoretical model is constructed that predicts that the choice to identify interacts with the observability of ethnicity, and the exposure to situations where there is a risk of discrimination, to produce a non-linear relationship with reported episodes of discrimination. Evidence from the 2008 National Aboriginal and Torres Strait Islanders Social Survey (NATSISS) is presented that is consistent with the predictions of this theory.

Suggested Citation

  • Hunter, Boyd & Howlett, Monica & Biddle, Nicholas, 2014. "Modelling Exposure to Risk of Experiencing Discrimination in the Context of Endogenous Ethnic Identification," IZA Discussion Papers 8040, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8040
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    File URL: https://docs.iza.org/dp8040.pdf
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    References listed on IDEAS

    as
    1. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162, November.
    2. Benjamin J. Stephens, 2010. "The Determinants of Labour Force Status among Indigenous Australians," Economics Discussion / Working Papers 10-11, The University of Western Australia, Department of Economics.
    3. Uri Gneezy & John List & Michael K. Price, 2012. "Toward an Understanding of Why People Discriminate: Evidence from a Series of Natural Field Experiments," NBER Working Papers 17855, National Bureau of Economic Research, Inc.
    4. Benjamin J. Stephens, 2010. "The Determinants of Labour Force Status among Indigenous Australians," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 13(3), pages 287-312.
    5. Rupa Banerjee, 2008. "An Examination of Factors Affecting Perception of Workplace Discrimination," Journal of Labor Research, Springer, vol. 29(4), pages 380-401, December.
    6. Nicholas Biddle & Monica Howlett & Boyd Hunter & Yin Paradies, 2013. "Labour market and other discrimination facing Indigenous Australians," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 16(1), pages 91-113.
    7. Boyd Hunter & Matthew Gray, 2012. "Indigenous Labour Supply following a Period of Strong Economic Growth," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 15(2), pages 141-159.
    8. Goldsmith, Arthur H. & Sedo, Stanley & Darity, William Jr. & Hamilton, Darrick, 2004. "The labor supply consequences of perceptions of employer discrimination during search and on-the-job: Integrating neoclassical theory and cognitive dissonance," Journal of Economic Psychology, Elsevier, vol. 25(1), pages 15-39, February.
    9. 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.
    10. Borland, Jeff & Hunter, Boyd, 2000. "Does Crime Affect Employment Status? The Case of Indigenous Australians," Economica, London School of Economics and Political Science, vol. 67(265), pages 123-144, February.
    11. Boyd Hunter & Matthew Gray, 2012. "Indigenous Labour Supply following a Period of Strong Economic Growth," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 15(2), pages 141-159.
    12. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-661, September.
    13. Barbara R. Bergmann, 1974. "Occupational Segregation, Wages and Profits When Employers Discriminate by Race or Sex," Eastern Economic Journal, Eastern Economic Association, vol. 1(2), pages 103-110, April.
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    Cited by:

    1. Siddarth Shirodkar & Boyd Hunter, 2021. "The impact of implicit bias on Indigenous business ownership rates in Australia," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 24(1), pages 1-24.

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    More about this item

    Keywords

    discrimination; racial bias; identity; social networks;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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