IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v58y2014icp83-94.html
   My bibliography  Save this article

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

Author

Listed:
  • Galarza, Francisco B.
  • Yamada, Gustavo

Abstract

We analyze labor discrimination in Peru, a fast-growing country where much anecdotal evidence suggests the presence of discriminatory practices in everyday life. Using surnames (indigenous/white) as a proxy for race, we sent 4820 fictitious CVs in response to 1205 real job vacancies for professional, technical, and unskilled jobs in Lima. Overall, whites receive more callbacks than indigenous applicants, and beautiful applicants receive more callbacks than homely-looking ones. The magnitude and significance of the racial and beauty gaps in callbacks substantially vary by job category. In particular, better looks only seem to matter in getting more callbacks for professional jobs.

Suggested Citation

  • Galarza, Francisco B. & Yamada, Gustavo, 2014. "Labor Market Discrimination in Lima, Peru: Evidence from a Field Experiment," World Development, Elsevier, vol. 58(C), pages 83-94.
  • Handle: RePEc:eee:wdevel:v:58:y:2014:i:c:p:83-94
    DOI: 10.1016/j.worlddev.2014.01.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305750X14000047
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Hugo Ñopo, 2008. "Matching as a Tool to Decompose Wage Gaps," The Review of Economics and Statistics, MIT Press, vol. 90(2), pages 290-299, May.
    2. 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 431-452, October.
    3. 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.
    4. Markus M. Mobius & Tanya S. Rosenblat, 2006. "Why Beauty Matters," American Economic Review, American Economic Association, vol. 96(1), pages 222-235, March.
    5. 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.
    6. Carlsson, Magnus & Rooth, Dan-Olof, 2007. "Evidence of ethnic discrimination in the Swedish labor market using experimental data," Labour Economics, Elsevier, vol. 14(4), pages 716-729, August.
    7. Moreno, Martín & Ñopo, Hugo & Saavedra, Jaime & Torero, Máximo, 2012. "Detecting Gender and Racial Discrimination in Hiring Through Monitoring Intermediation Services: The Case of Selected Occupations in Metropolitan Lima, Peru," World Development, Elsevier, vol. 40(2), pages 315-328.
    8. 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).
    9. Hamermesh, Daniel S & Biddle, Jeff E, 1994. "Beauty and the Labor Market," American Economic Review, American Economic Association, vol. 84(5), pages 1174-1194, December.
    10. 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.
    11. López Bóo, Florencia & Rossi, Martín A. & Urzúa, Sergio S., 2013. "The labor market return to an attractive face: Evidence from a field experiment," Economics Letters, Elsevier, vol. 118(1), pages 170-172.
    12. Hugo Ñopo, 2004. "The Gender Wage Gap in Peru 1986-2000: Evidence from a Matching Comparisons Approach," Económica, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 0(1-2), pages 9-37, January-D.
    13. 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.
    14. 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, February.
    15. James J. Heckman, 1998. "Detecting Discrimination," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 101-116, Spring.
    16. John A. List, 2004. "The Nature and Extent of Discrimination in the Marketplace: Evidence from the Field," The Quarterly Journal of Economics, Oxford University Press, vol. 119(1), pages 49-89.
    17. Magnus Carlsson & Dan-Olof Rooth, 2012. "Revealing taste-based discrimination in hiring: a correspondence testing experiment with geographic variation," Applied Economics Letters, Taylor & Francis Journals, vol. 19(18), pages 1861-1864, December.
    18. Bradley J. Ruffle & Ze'ev Shtudiner, 2015. "Are Good-Looking People More Employable?," Management Science, INFORMS, vol. 61(8), pages 1760-1776, August.
    19. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-661, September.
    20. Dennis J. Aigner & Glen G. Cain, 1977. "Statistical Theories of Discrimination in Labor Markets," ILR Review, Cornell University, ILR School, vol. 30(2), pages 175-187, January.
    21. 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.
    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


    Cited by:

    1. Pasquier-Doumer, Laure & Risso Brandon, Fiorella, 2015. "Aspiration Failure: A Poverty Trap for Indigenous Children in Peru?," World Development, Elsevier, vol. 72(C), pages 208-223.
    2. Pablo Lavado & Gustavo Yamada, 2013. "Fear of Labor Rigidities – The Role of Expectations in Employment Growth in Peru," Working Papers 13-16, Centro de Investigación, Universidad del Pacífico.
    3. David Neumark, 2016. "Experimental Research on Labor Market Discrimination," NBER Working Papers 22022, National Bureau of Economic Research, Inc.
    4. Richard Chisik, 2015. "Job market signalling, stereotype threat and counter-stereotypical behaviour," Canadian Journal of Economics, Canadian Economics Association, vol. 48(1), pages 155-188, February.
    5. Beam, Emily A. & Hyman, Joshua & Theoharides, Caroline, 2017. "The Relative Returns to Education, Experience, and Attractiveness for Young Workers," IZA Discussion Papers 10537, Institute for the Study of Labor (IZA).
    6. Gustavo, Yamada & Pablo, Lavado & Luciano, Velarde, 2014. "Habilidades no cognitivas y brecha de género salarial en el Perú," Estudios Públicos, Centro de Estudios Públicos, vol. 0(135), pages 89-129.
    7. Francisco B. Galarza, 2017. "Trust and Trustworthiness in College: An Experimental Analysis," Working Papers 17-03, Centro de Investigación, Universidad del Pacífico.
    8. Marianne Bertrand & Esther Duflo, 2016. "Field Experiments on Discrimination," NBER Working Papers 22014, National Bureau of Economic Research, Inc.
    9. repec:cem:jaecon:v:20:y:2017:n:1:p:29-47 is not listed on IDEAS
    10. Leda M. Pérez & Pedro Llanos Paredes, 2015. "¿Al fondo del escalafón?: un estado de la cuestión sobre el trabajo doméstico remunerado en el Perú," Working Papers 15-01, Centro de Investigación, Universidad del Pacífico.
    11. repec:eee:wdevel:v:96:y:2017:i:c:p:520-528 is not listed on IDEAS
    12. Francisco Galarza & Gustavo Yamada & Carlos Zelada, 2015. "Cuesta arriba para los afroperuanos: evidencia de la discriminación en el acceso al mercado laboral de Lima Metropolitana," Working Papers 15-03, Centro de Investigación, Universidad del Pacífico.
    13. Francisco B. Galarza & Gustavo Yamada, 2017. "Triple penalty in employment access: The role of beauty, race, and sex," Journal of Applied Economics, Universidad del CEMA, vol. 20, pages 29-47, May.
    14. Baert, Stijn, 2017. "Hiring Discrimination: An Overview of (Almost) All Correspondence Experiments Since 2005," IZA Discussion Papers 10738, Institute for the Study of Labor (IZA).
    15. repec:eee:wdevel:v:101:y:2018:i:c:p:1-15 is not listed on IDEAS
    16. Bedi, Arjun S. & Majilla, Tanmoy & Rieger, Matthias, 2018. "Gender Norms and the Motherhood Penalty: Experimental Evidence from India," IZA Discussion Papers 11360, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    labor discrimination; field experiment; audit study; Peru; Latin America;

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:58:y:2014:i:c:p:83-94. 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: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.