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Ethnic Discrimination in the Market Place of Small Business Transfers

Author

Listed:
  • Ali M Ahmed

    () (Linnaeus University)

  • Lina Andersson

    () (Linnaeus University)

  • Mats Hammarstedt

    () (Linnaeus University)

Abstract

This paper presents the first field experiment regarding ethnic discrimination in the market place of small business transfers. We let two fictitious prospective buyers, one with a typical Swedish name and one with a typical Arab/Muslim name, respond to advertisements of small business transfers on the Internet in Sweden. We then recorded the number contacts achieved by each fictitious buyer with sellers. We found that sellers discriminated against the buyer with an Arab/Muslim name in the sense that the buyer with an Arab/Muslim name obtained fewer contacts with sellers than did the buyer with a Swedish name.

Suggested Citation

  • Ali M Ahmed & Lina Andersson & Mats Hammarstedt, 2009. "Ethnic Discrimination in the Market Place of Small Business Transfers," Economics Bulletin, AccessEcon, vol. 29(4), pages 3050-3058.
  • Handle: RePEc:ebl:ecbull:eb-09-00626
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2009/Volume29/EB-09-V29-I4-P293.pdf
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    References listed on IDEAS

    as
    1. Amelie Constant & Klaus Zimmermann, 2006. "The Making of Entrepreneurs in Germany: Are Native Men and Immigrants Alike?," Small Business Economics, Springer, vol. 26(3), pages 279-300, April.
    2. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-661, September.
    3. Clark, Kenneth & Drinkwater, Stephen, 2000. "Pushed out or pulled in? Self-employment among ethnic minorities in England and Wales," Labour Economics, Elsevier, vol. 7(5), pages 603-628, September.
    4. Mats Hammarstedt, 2001. "Immigrant self-employment in Sweden - its variation and some possible determinants," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 13(2), pages 147-161, April.
    5. Mats Hammarstedt, 2006. "The predicted earnings differential and immigrant self-employment in Sweden," Applied Economics, Taylor & Francis Journals, vol. 38(6), pages 619-630.
    6. 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.
    7. James J. Heckman, 1998. "Detecting Discrimination," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 101-116, Spring.
    8. Andrew M. Yuengert, 1995. "Testing Hypotheses of Immigrant Self-Employment," Journal of Human Resources, University of Wisconsin Press, vol. 30(1), pages 194-204.
    9. Robert W. Fairlie & Bruce D. Meyer, 1996. "Ethnic and Racial Self-Employment Differences and Possible Explanations," Journal of Human Resources, University of Wisconsin Press, vol. 31(4), pages 757-793.
    10. Ahmed, Ali M. & Hammarstedt, Mats, 2008. "Discrimination in the rental housing market: A field experiment on the Internet," Journal of Urban Economics, Elsevier, vol. 64(2), pages 362-372, September.
    11. Borjas, George J & Bronars, Stephen G, 1989. "Consumer Discrimination and Self-employment," Journal of Political Economy, University of Chicago Press, vol. 97(3), pages 581-605, June.
    12. 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.
    13. George J. Borjas, 1986. "The Self-Employment Experience of Immigrants," Journal of Human Resources, University of Wisconsin Press, vol. 21(4), pages 485-506.
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    Citations

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    Cited by:

    1. Bird, Miriam & Wennberg, Karl, 2016. "Why family matters: The impact of family resources on immigrant entrepreneurs' exit from entrepreneurship," Journal of Business Venturing, Elsevier, vol. 31(6), pages 687-704.
    2. repec:eee:jeborg:v:141:y:2017:i:c:p:29-42 is not listed on IDEAS
    3. Jonas Månsson & Josefin Dahlander, 2011. "Social interaction impact on attitudes – Native Swedes’ attitudes towards labour immigrants and guest workers after hurricane Gudrun," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 11(1), pages 51-64, July.

    More about this item

    Keywords

    Discrimination; self-employment; small business transfers; ethnic minorities; field experiment.;

    JEL classification:

    • J7 - Labor and Demographic Economics - - Labor Discrimination
    • C9 - Mathematical and Quantitative Methods - - Design of Experiments

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