Advanced Search
MyIDEAS: Login to save this paper or follow this series

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

Contents:

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.

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/dp8150.pdf
Download Restriction: no

Bibliographic Info

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

as in new window
Length: 48 pages
Date of creation: Apr 2014
Date of revision:
Handle: RePEc:iza:izadps:dp8150

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

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. Harry J. Holzer & Keith R. Ihlanfeldt, 1998. "Customer Discrimination And Employment Outcomes For Minority Workers," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 113(3), pages 835-867, August.
  2. Patacchini, Eleonora & Zenou, Yves, 2008. "Ethnic Networks and Employment Outcomes," IZA Discussion Papers 3331, Institute for the Study of Labor (IZA).
  3. Black, Dan A, 1995. "Discrimination in an Equilibrium Search Model," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 13(2), pages 309-33, April.
  4. Audra J. Bowlus & Zvi Eckstein, 2002. "Discrimination and Skill Differences in an Equilibrium Search Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(4), pages 1309-1345, November.
  5. Marianne Bertrand & Erzo F. P. Luttmer & Sendhil Mullainathan, 2000. "Network Effects And Welfare Cultures," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 115(3), pages 1019-1055, August.
  6. repec:spo:wpecon:info:hdl:2441/5l6uh8ogmqildh09h482kc28p is not listed on IDEAS
  7. Gregory Verdugo, 2011. "Public Housing and Residential Segregation of Immigrants in France, 1968-1999," Population (english edition), Institut National d'Études Démographiques (INED), Institut National d'Études Démographiques (INED), vol. 66(1), pages 169-193.
  8. Pierre-Philippe Combes & Bruno Decreuse & Benoît Schmutz & Alain Trannoy, 2012. "The Neighbor is King: Customer Discrimination in the Housing Market," AMSE Working Papers 1224, Aix-Marseille School of Economics, Marseille, France.
  9. Laura Giuliano & David I. Levine & Jonathan Leonard, 2009. "Manager Race and the Race of New Hires," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 27(4), pages 589-631, October.
  10. David Card & John E. DiNardo, 2000. "Do Immigrant Inflows Lead to Native Outflows?," NBER Working Papers 7578, National Bureau of Economic Research, Inc.
  11. Emmanuel Duguet & Noam Leandri & Pascale Petit & Yannick L'Horty, 2010. "Are young French jobseekers of ethnic immigrant origin discriminated against? A controlled experiment in the Paris area," TEPP Working Paper, TEPP 2010-01, TEPP.
  12. Lang, Kevin, 1986. "A Language Theory of Discrimination," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 101(2), pages 363-82, May.
  13. Bauer, Thomas & Epstein, Gil S & Gang, Ira, 2002. "Enclaves, Language and the Location Choice of Migrants," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3527, C.E.P.R. Discussion Papers.
  14. Rosén, Åsa, 1998. "Search, Bargaining and Employer Discrimination," Working Paper Series, Uppsala University, Department of Economics 1998:13, Uppsala University, Department of Economics.
  15. Imbens, Guido W & Angrist, Joshua D, 1994. "Identification and Estimation of Local Average Treatment Effects," Econometrica, Econometric Society, Econometric Society, vol. 62(2), pages 467-75, March.
  16. Quentin David & Alexandre Janiak & Etienne Wasmer, 2009. "Local social capital and geographical mobility," CREA Discussion Paper Series 09-11, Center for Research in Economic Analysis, University of Luxembourg.
  17. Lawrence M. Kahn, 1991. "Discrimination in professional sports: A survey of the literature," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 44(3), pages 395-418, April.
  18. GOBILLON Laurent & MAGNAC Thierry & SELOD Harris, 2007. "The effect of location on finding a job in the Paris region," Research Unit Working Papers, Laboratoire d'Economie Appliquee, INRA 0703, Laboratoire d'Economie Appliquee, INRA.
  19. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, Econometric Society, vol. 47(1), pages 153-61, January.
  20. David Card, 1997. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," NBER Working Papers 5927, National Bureau of Economic Research, Inc.
  21. Kevin Lang & Michael Manove & William T. Dickens, 2005. "Racial Discrimination in Labor Markets with Posted Wage Offers," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-145, Boston University - Department of Economics.
  22. GOBILLON Laurent & SELOD Harris, 2007. "The effects of segregation and spatial mismatch on unemployment: evidence from France," Research Unit Working Papers, Laboratoire d'Economie Appliquee, INRA 0702, Laboratoire d'Economie Appliquee, INRA.
  23. Cragg, John G. & Donald, Stephen G., 1997. "Inferring the rank of a matrix," Journal of Econometrics, Elsevier, Elsevier, vol. 76(1-2), pages 223-250.
  24. Anna Maria Mayda, 2007. "International migration: A panel data analysis of the determinants of bilateral flows," CReAM Discussion Paper Series 0707, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  25. Sundstrom, William A., 2007. "The Geography of Wage Discrimination in the Pre Civil Rights South," The Journal of Economic History, Cambridge University Press, Cambridge University Press, vol. 67(02), pages 410-444, June.
  26. Ã…slund, Olof, 2001. "Now and forever? Initial and subsequent location choices of immigrants," Working Paper Series, IFAU - Institute for Evaluation of Labour Market and Education Policy 2001:11, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  27. Jennifer Hunt, 1992. "The impact of the 1962 repatriates from Algeria on the French labor market," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 45(3), pages 556-572, April.
  28. Pedersen, Peder J. & Pytlikova, Mariola & Smith, Nina, 2008. "Selection and network effects--Migration flows into OECD countries 1990-2000," European Economic Review, Elsevier, Elsevier, vol. 52(7), pages 1160-1186, October.
  29. Conley, T.G. & Topa, G., 1999. "Socio-Economic Distance and Spatial Patterns in Unemployment," Working Papers, C.V. Starr Center for Applied Economics, New York University 99-04, C.V. Starr Center for Applied Economics, New York University.
  30. Borjas, George J, 1999. "Immigration and Welfare Magnets," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 17(4), pages 607-37, October.
  31. Anna Damm, 2009. "Determinants of recent immigrants’ location choices: quasi-experimental evidence," Journal of Population Economics, Springer, Springer, vol. 22(1), pages 145-174, January.
  32. David Card & Alan Krueger, 1990. "School Quality and Black/White Relative Earnings: A Direct Assessment," Working Papers, Princeton University, Department of Economics, Industrial Relations Section. 652, Princeton University, Department of Economics, Industrial Relations Section..
  33. Collins, Wiiliam J., 1997. "When the Tide Turned: Immigration and the Delay of the Great Black Migration," The Journal of Economic History, Cambridge University Press, Cambridge University Press, vol. 57(03), pages 607-632, September.
  34. Ihlanfeldt, Keith R & Young, Madelyn V, 1994. "Intrametropolitan Variation in Wage Rates: The Case of Atlanta Fast-Food Restaurant Workers," The Review of Economics and Statistics, MIT Press, vol. 76(3), pages 425-33, August.
  35. Hubert Jayet & Nadiya UKRAYINCHUK, 2007. "La localisation des immigrants en France : Une première approche," Revue d'économie régionale et urbaine, Armand Colin, Armand Colin, vol. 0(4), pages 625-649.
  36. Bartel, Ann P, 1989. "Where Do the New U.S. Immigrants Live?," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 7(4), pages 371-91, October.
  37. Yann Algan & Christian Dustmann & Albrecht Glitz & Alan Manning, 2009. "The Economic Situation of First- and Second-Generation Immigrants in France, Germany and the United Kingdom," CEP Discussion Papers dp0951, Centre for Economic Performance, LSE.
  38. Lewer, Joshua J. & Van den Berg, Hendrik, 2008. "A gravity model of immigration," Economics Letters, Elsevier, Elsevier, vol. 99(1), pages 164-167, April.
  39. Jonathan S. Leonard & David I. Levine & Laura Giuliano, 2010. "Customer Discrimination," The Review of Economics and Statistics, MIT Press, vol. 92(3), pages 670-678, August.
  40. Leah Platt Boustan, 2010. "Was Postwar Suburbanization "White Flight"? Evidence from the Black Migration," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 125(1), pages 417-443, February.
  41. Nardinelli, Clark & Simon, Curtis, 1990. "Customer Racial Discrimination in the Market for Memorabilia: The Case of Baseball," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 105(3), pages 575-95, August.
  42. James H. Stock & Motohiro Yogo, 2002. "Testing for Weak Instruments in Linear IV Regression," NBER Technical Working Papers 0284, National Bureau of Economic Research, Inc.
  43. Romain Aeberhardt & Denis Fougère & Julien Pouget & Roland Rathelot, 2007. "Wages and Employment of French Workers with African Origin," Working Papers, Centre de Recherche en Economie et Statistique 2007-36, Centre de Recherche en Economie et Statistique.
  44. 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, American Economic Association, vol. 84(3), pages 674-83, June.
  45. Kerwin Kofi Charles & Jonathan Guryan, 2008. "Prejudice and Wages: An Empirical Assessment of Becker's The Economics of Discrimination," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 116(5), pages 773-809, October.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. 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).
  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. repec:hal:wpaper:halshs-00849074 is not listed on IDEAS
  4. Gobillon, Laurent & Rupert, Peter & Wasmer, Etienne, 2014. "Ethnic unemployment rates and frictional markets," Journal of Urban Economics, Elsevier, vol. 79(C), pages 108-120.

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:dp8150. 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.