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Does Competition Induce Hiring Equity?

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Abstract

This paper tests the impact of competition on the hiring process in the French retail sector. Following the Becker's theory, higher the competition, lower is discrimination. Using local Herfindhal-Hirschman indexes, a correspondence study ensures to observe how competition affects discrimination. A strong employment gap is observable between French natives and second generation immigrants. Concerning gender, women are favored as cashiers. The impact of competition depends on the target population : competition reinforces preference for women, whereas discrimination due to origin is follows the Becker's theory. However, increasing competition to fight against discrimination is not a solution, as it will enhance bad condition of women in the labor market and an increase of awareness of human resources department to equality of treatment is more efficient.

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File URL: ftp://mse.univ-paris1.fr/pub/mse/CES2012/12019.pdf
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Paper provided by Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne in its series Documents de travail du Centre d'Economie de la Sorbonne with number 12019.

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Length: 39 pages
Date of creation: Jan 2012
Date of revision:
Handle: RePEc:mse:cesdoc:12019

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Keywords: Discrimination; hiring; competition.;

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  1. Marianne Bertrand & Francis Kramarz, 2001. "Does Entry Regulation Hinder Job Creation ? Evidence from the French Retail Industry," Working Papers 2001-12, Centre de Recherche en Economie et Statistique.
  2. Black, Sandra & Brainerd, Elizabeth, 2002. "Importing Equality? The Impact of Globalization on Gender Discrimination," CEPR Discussion Papers 3532, C.E.P.R. Discussion Papers.
  3. Heywood, John S & Peoples, James H, Jr, 1994. "Deregulation and the Prevalence of Black Truck Drivers," Journal of Law and Economics, University of Chicago Press, vol. 37(1), pages 133-55, April.
  4. 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.
  5. Judith K. Hellerstein & David Neumark & Kenneth R. Troske, 2002. "Market Forces and Sex Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 37(2), pages 353-380.
  6. 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 2010-01, TEPP.
  7. 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.
  8. Pierre Biscourp & Xavier Boutin & Thibaud Vergé, 2013. "The effects of Retail Regulations on Prices : Evidence from the Loi Galland," Working Papers 2013-49, Centre de Recherche en Economie et Statistique.
  9. Allain, Marie-Laure & Chambolle, Claire & Vergé, Thibaud, 2008. "La Loi Galland sur les relations commerciales : jusqu'où les réformer ?," Opuscules du CEPREMAP, CEPREMAP, number 13, May.
  10. 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.
  11. James Peoples & Lisa Saunders, 1993. "Trucking deregulation and the black/white wage gap," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 47(1), pages 23-35, October.
  12. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-61, September.
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Cited by:
  1. Stijn Baert & Bart Cockx & Niels Gheyle & Cora Vandamme, 2013. "Do Employers Discriminate Less if Vacancies are Difficult to Fill? Evidence from a Field Experiment," CESifo Working Paper Series 4093, CESifo Group Munich.
  2. Jacquemet, Nicolas & Edo, Anthony, 2013. "La discrimination à l’embauche sur le marché du travail français," Opuscules du CEPREMAP, CEPREMAP, number 31, May.

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