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Customer Discrimination and Employment Outcomes: Theory and Evidence from the French Labor Market

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Author Info

  • Combes, Pierre-Philippe

    ()
    (GREQAM, University of Aix-Marseille)

  • Decreuse, Bruno

    ()
    (GREQAM, University of Aix-Marseille)

  • Laouénan, Morgane

    ()
    (IRES, Université catholique de Louvain)

  • Trannoy, Alain

    ()
    (EHESS, Paris)

Abstract

The paper investigates the link between the over-exposure of African immigrants to unemployment in France and their under-representation in jobs in contact with customers. We build a two-sector matching model with ethnic sector-specific preferences, economy-wide employer discrimination, and customer discrimination in jobs in contact with customers. The outcomes of the model allow us to build a test of ethnic discrimination in general and customer discrimination in particular. We run the test on French individual data in a cross-section of local labor markets (Employment Areas). Our results show that there is both ethnic and customer discrimination in the French labor market.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 8150.

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Length: 48 pages
Date of creation: Apr 2014
Date of revision:
Handle: RePEc:iza:izadps:dp8150

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Keywords: discrimination; matching frictions; jobs in contact; ethnic unemployment; local labor markets;

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References

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Citations

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Cited by:
  1. Gobillon, Laurent & Rupert, Peter & Wasmer, Etienne, 2014. "Ethnic unemployment rates and frictional markets," Journal of Urban Economics, Elsevier, vol. 79(C), pages 108-120.
  2. Morgane Laouénan, 2013. ""Hate at First Sight": Evidence of Consumer Discrimination Against African-Americans in the US," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2013032, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  3. Laouénan, Morgane, 2014. "'Can't Get Enough': Prejudice, Contact Jobs and the Racial Wage Gap in the US," IZA Discussion Papers 8006, Institute for the Study of Labor (IZA).

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