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Labor Market Discrimination in Lima, Peru: Evidence from a Field Experiment

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Author Info

  • Francisco Galarza

    ()
    (Departamento de Economía, Universidad del Pacífico)

  • Gustavo Yamada

    ()
    (Departamento de Economía, Universidad del Pacífico)

Abstract

"Latin America is seen as a highly discriminatory society. However, such a common belief appears not to be based on strong empirical evidence (Chong and Ñopo, 2007). This paper exploits novel experimental data gathered to identify the existence of discrimination in the labor market of Lima, Peru, a fast-growing country where much anecdotal evidence suggests the presence of discriminatory practices at many instances of daily life. Focusing on two dimensions, sex (female/male) and surnames (indigenous/white), we sent 4,820 fictitious and equivalent CVs in response to 1,205 real job vacancies advertised in an important Peruvian newspaper. We randomly allocated indigenous and white surnames across CVs sent in application to professional, technical, and unskilled jobs. Overall, we find that males receive 20 percent more callbacks than females, and whites receive 80 percent more calls than indigenous applicants. Within job categories, we find sexual discrimination only in unskilled jobs, while discrimination against indigenous is verified across all job categories. There are no statistically significant differences in the time to receive a phone call among male/female, and white/indigenous applicants."

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File URL: http://www.up.edu.pe/ciup/SiteAssets/Lists/JER_Jerarquia/EditForm/12-03.pdf
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Bibliographic Info

Paper provided by Departamento de Economía, Universidad del Pacífico in its series Working Papers with number 12-03.

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Length: 31 pages
Date of creation: Mar 2012
Date of revision: Mar 2012
Handle: RePEc:pai:wpaper:12-03

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Web page: http://www.up.edu.pe/
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Related research

Keywords: Discrimination; Experimental economics; Audit studies;

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References

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  1. Markus M. Mobius & Tanya S. Rosenblat, 2006. "Why Beauty Matters," American Economic Review, American Economic Association, vol. 96(1), pages 222-235, March.
  2. Banerjee, Abhijit & Bertrand, Marianne & Datta, Saugato & Mullainathan, Sendhil, 2009. "Labor market discrimination in Delhi: Evidence from a field experiment," Journal of Comparative Economics, Elsevier, vol. 37(1), pages 14-27, March.
  3. James J. Heckman, 1998. "Detecting Discrimination," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 101-116, Spring.
  4. 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.
  5. López Bóo, Florencia & Rossi, Martín A. & Urzua, Sergio, 2012. "The Labor Market Return to an Attractive Face: Evidence from a Field Experiment," IZA Discussion Papers 6356, Institute for the Study of Labor (IZA).
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  8. Bradley J. Ruffle & Ze’ev Shtudiner, 2010. "Are Good-Looking People More Employable?," Working Papers 1006, Ben-Gurion University of the Negev, Department of Economics.
  9. Doris Weichselbaumer, 2004. "Is It Sex or Personality? The Impact of Sex Stereotypes on Discrimination in Applicant Selection," Eastern Economic Journal, Eastern Economic Association, vol. 30(2), pages 159-186, Spring.
  10. Hamermesh, Daniel S & Biddle, Jeff E, 1994. "Beauty and the Labor Market," American Economic Review, American Economic Association, vol. 84(5), pages 1174-94, December.
  11. Petra Moser, 2008. "An Empirical Test of Taste-based Discrimination Changes in Ethnic Preferences and their Effect on Admissions to the NYSE during World War I," NBER Working Papers 14003, National Bureau of Economic Research, Inc.
  12. Marianne Bertrand & Sendhil Mullainathan, 2004. "Are Emily and Greg More Employable Than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination," American Economic Review, American Economic Association, vol. 94(4), pages 991-1013, September.
  13. Peter Riach & Judith Rich, 2002. "Field experiments of discrimination in the market place," Natural Field Experiments 00328, The Field Experiments Website.
  14. Dan-Olof Rooth, 2009. "Obesity, Attractiveness, and Differential Treatment in Hiring: A Field Experiment," Journal of Human Resources, University of Wisconsin Press, vol. 44(3).
  15. Leo Kaas & Christian Manger, 2012. "Ethnic Discrimination in Germany's Labour Market: A Field Experiment," German Economic Review, Verein für Socialpolitik, vol. 13(1), pages 1-20, 02.
  16. Dennis J. Aigner & Glen G. Cain, 1977. "Statistical theories of discrimination in labor markets," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 30(2), pages 175-187, January.
  17. 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. Yamada, Gustavo & Lavado, Pablo & Velarde, Luciana, 2013. "Habilidades No Cognitivas y Brecha de Género Salarial en el Perú," Working Papers 2013-014, Banco Central de Reserva del Perú.
  2. Francisco Galarza & Gustavo Yamada, 2012. "Triple punishment in employment access: the role of beauty, race and sex," Working Papers 12-13, Departamento de Economía, Universidad del Pacífico, revised Dec 2012.

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