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

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  • Pierre-Philippe Combes
  • Bruno Decreuse
  • Morgane Laouénan
  • Alain Trannoy

Abstract

The paper investigates the link between the overexposure of African immigrants to unemployment in France and their underrepresentation 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 both ethnic and customer discrimination in the French labor market.

Suggested Citation

  • Pierre-Philippe Combes & Bruno Decreuse & Morgane Laouénan & Alain Trannoy, 2016. "Customer Discrimination and Employment Outcomes: Theory and Evidence from the French Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 34(1), pages 107-160.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/682332
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    Cited by:

    1. Romain Aeberhardt & Élise Coudin & Roland Rathelot, 2017. "The heterogeneity of ethnic employment gaps," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(1), pages 307-337, January.
    2. Combes, Pierre-Philippe & Decreuse, Bruno & Schmutz, Benoît & Trannoy, Alain, 2018. "Neighbor discrimination theory and evidence from the French rental market," Journal of Urban Economics, Elsevier, vol. 104(C), pages 104-123.
    3. Laouénan, Morgane, 2017. "‘Hate at First Sight’: Evidence of consumer discrimination against African-Americans in the US," Labour Economics, Elsevier, vol. 46(C), pages 94-109.
    4. 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).
    5. Gobillon, Laurent & Rupert, Peter & Wasmer, Etienne, 2014. "Ethnic unemployment rates and frictional markets," Journal of Urban Economics, Elsevier, vol. 79(C), pages 108-120.
    6. Nunley John M. & Pugh Adam & Romero Nicholas & Seals R. Alan, 2015. "Racial Discrimination in the Labor Market for Recent College Graduates: Evidence from a Field Experiment," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 15(3), pages 1093-1125, July.
    7. Boyd-Swan, Casey & Herbst, Chris M., 2017. "Racial and Ethnic Discrimination in the Labor Market for Child Care Teachers," IZA Discussion Papers 11140, Institute for the Study of Labor (IZA).
    8. Sur, Pramod Kumar & Sasaki, Masaru, 2018. "Measuring Customer Discrimination: Evidence from the Professional Cricket League in India," IZA Discussion Papers 11319, Institute for the Study of Labor (IZA).
    9. Ahmed, Ali & Hammarstedt, Mats, 2018. "Customer Discrimination in the Fast Food Market? Experimental Evidence from a Swedish University Campus," Working Paper Series 1232, Research Institute of Industrial Economics.
    10. 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.
    11. Morgane Laouénan, 2013. "Un cas particulier de discrimination sur le marché du travail : l'accès aux emplois en contact avec le public," Économie et Statistique, Programme National Persée, vol. 464(1), pages 35-58.
    12. Laurent Gobillon & Matthieu Solignac, 2014. "Homeownership of immigrants in France," ERSA conference papers ersa14p558, European Regional Science Association.
    13. 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.

    More about this item

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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