IDEAS home Printed from https://ideas.repec.org/a/ucp/jlabec/doi10.1086-682332.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    DOI: 10.1086/682332
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/682332
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: http://dx.doi.org/10.1086/682332
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: https://libkey.io/10.1086/682332?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Audra J. Bowlus & Zvi Eckstein, 2002. "Discrimination and Skill Differences in an Equilibrium Search Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(4), pages 1309-1345, November.
    2. Laura Giuliano & David I. Levine & Jonathan Leonard, 2009. "Manager Race and the Race of New Hires," Journal of Labor Economics, University of Chicago Press, vol. 27(4), pages 589-631, October.
    3. repec:spo:wpmain:info:hdl:2441/5l6uh8ogmqildh09h482kc28p is not listed on IDEAS
    4. Lewer, Joshua J. & Van den Berg, Hendrik, 2008. "A gravity model of immigration," Economics Letters, Elsevier, vol. 99(1), pages 164-167, April.
    5. John DiNardo & David Card, 2000. "Do Immigrant Inflows Lead to Native Outflows?," American Economic Review, American Economic Association, vol. 90(2), pages 360-367, May.
    6. Harry J. Holzer & Keith R. Ihlanfeldt, 1998. "Customer Discrimination and Employment Outcomes for Minority Workers," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(3), pages 835-867.
    7. Kevin Lang, 1986. "A Language Theory of Discrimination," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 101(2), pages 363-382.
    8. Jennifer Hunt, 1992. "The Impact of the 1962 Repatriates from Algeria on the French Labor Market," ILR Review, Cornell University, ILR School, vol. 45(3), pages 556-572, April.
    9. Stephens-Davidowitz, Seth, 2014. "The cost of racial animus on a black candidate: Evidence using Google search data," Journal of Public Economics, Elsevier, vol. 118(C), pages 26-40.
    10. Fernández-Val, Iván, 2009. "Fixed effects estimation of structural parameters and marginal effects in panel probit models," Journal of Econometrics, Elsevier, vol. 150(1), pages 71-85, May.
    11. David Card & Alan B. Krueger, 1992. "School Quality and Black-White Relative Earnings: A Direct Assessment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(1), pages 151-200.
    12. Thomas Bauer & Gil Epstein & Ira Gang, 2005. "Enclaves, language, and the location choice of migrants," Journal of Population Economics, Springer;European Society for Population Economics, vol. 18(4), pages 649-662, November.
    13. Emmanuel Duguet & Noam Leandri & Yannick L'horty & Pascale Petit, 2010. "Are Young French Jobseekers of Ethnic Immigrant Origin Discriminated Against? A Controlled Experiment in the Paris Area," Annals of Economics and Statistics, GENES, issue 99-100, pages 187-215.
    14. Joshua L Rosenbloom & William A Sundstrom, 2004. "The Decline And Rise Of Interstate Migration In The United States: Evidence From The Ipums, 1850–1990," Research in Economic History, in: Research in Economic History, pages 289-325, Emerald Group Publishing Limited.
    15. Pierre-Philippe Combes & Bruno Decreuse & Benoît Schmutz & Alain Trannoy, 2010. "The Neighbor is King: Customer Discrimination in the Housing Market," IDEP Working Papers 1003, Institut d'economie publique (IDEP), Marseille, France, revised Jun 2010.
    16. George J. Borjas, 2021. "Does Immigration Grease the Wheels of the Labor Market?," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 14, pages 431-484, World Scientific Publishing Co. Pte. Ltd..
    17. repec:spo:wpmain:info:hdl:2441/536kq4edtr82jqovubq3ttobc5 is not listed on IDEAS
    18. repec:hal:spmain:info:hdl:2441/5l6uh8ogmqildh09h482kc28p is not listed on IDEAS
    19. Marianne Bertrand & Erzo F. P. Luttmer & Sendhil Mullainathan, 2000. "Network Effects and Welfare Cultures," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(3), pages 1019-1055.
    20. Ihlanfeldt, Keith R & Young, Madelyn V, 1994. "Intrametropolitan Variation in Wage Rates: The Case of Atlanta Fast-Food Restaurant Workers," The Review of Economics and Statistics, MIT Press, vol. 76(3), pages 425-433, August.
    21. Imbens, Guido W & Angrist, Joshua D, 1994. "Identification and Estimation of Local Average Treatment Effects," Econometrica, Econometric Society, vol. 62(2), pages 467-475, March.
    22. Hubert Jayet & Nadiya Ukrayinchuk, 2007. "La localisation des immigrants en France : Une première approche," Revue d'économie régionale et urbaine, Armand Colin, vol. 0(4), pages 625-649.
    23. Anna Damm, 2009. "Determinants of recent immigrants’ location choices: quasi-experimental evidence," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(1), pages 145-174, January.
    24. Black, Dan A, 1995. "Discrimination in an Equilibrium Search Model," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 309-333, April.
    25. Laurent Gobillon & Harris Selod & Yves Zenou, 2007. "The Mechanisms of Spatial Mismatch," Urban Studies, Urban Studies Journal Limited, vol. 44(12), pages 2401-2427, November.
    26. Anna Mayda, 2010. "International migration: a panel data analysis of the determinants of bilateral flows," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(4), pages 1249-1274, September.
    27. David, Quentin & Janiak, Alexandre & Wasmer, Etienne, 2010. "Local social capital and geographical mobility," Journal of Urban Economics, Elsevier, vol. 68(2), pages 191-204, September.
    28. Card, David, 2001. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 22-64, January.
    29. Laurent Gobillon & Thierry Magnac & Harris Selod, 2011. "The effect of location on finding a job in the Paris region," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 26(7), pages 1079-1112, November.
    30. Asa Rosen, 2003. "Search, Bargaining, and Employer Discrimination," Journal of Labor Economics, University of Chicago Press, vol. 21(4), pages 807-830, October.
    31. Yann Algan & Christian Dustmann & Albrecht Glitz & Alan Manning, 2010. "The Economic Situation of First and Second-Generation Immigrants in France, Germany and the United Kingdom," Economic Journal, Royal Economic Society, vol. 120(542), pages 4-30, February.
    32. Cragg, John G. & Donald, Stephen G., 1997. "Inferring the rank of a matrix," Journal of Econometrics, Elsevier, vol. 76(1-2), pages 223-250.
    33. Clark Nardinelli & Curtis Simon, 1990. "Customer Racial Discrimination in the Market for Memorabilia: The Case of Baseball," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 105(3), pages 575-595.
    34. Romain Aeberhardt & Denis Fougère & Julien Pouget & Roland Rathelot, 2010. "Wages and employment of French workers with African origin," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(3), pages 881-905, June.
    35. Per-Anders Edin & Peter Fredriksson & Olof Åslund, 2003. "Ethnic Enclaves and the Economic Success of Immigrants—Evidence from a Natural Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(1), pages 329-357.
    36. De Giorgi, Giacomo & Pellizzari, Michele, 2009. "Welfare migration in Europe," Labour Economics, Elsevier, vol. 16(4), pages 353-363, August.
    37. Laurent Gobillon & Harris Selod, 2007. "The Effects of Segregation and Spatial Mismatch on Unemployment : Evidence from France," Working Papers 2007-04, Center for Research in Economics and Statistics.
    38. Patacchini, Eleonora & Zenou, Yves, 2012. "Ethnic networks and employment outcomes," Regional Science and Urban Economics, Elsevier, vol. 42(6), pages 938-949.
    39. Kenney, Genevieve M & Wissoker, Douglas A, 1994. "An Analysis of the Correlates of Discrimination Facing Young Hispanic Job-Seekers," American Economic Review, American Economic Association, vol. 84(3), pages 674-683, June.
    40. Joshua D. Angrist & Adriana D. Kugler, 2003. "Protective or counter-productive? labour market institutions and the effect of immigration on eu natives," Economic Journal, Royal Economic Society, vol. 113(488), pages 302-331, June.
    41. repec:hal:spmain:info:hdl:2441/536kq4edtr82jqovubq3ttobc5 is not listed on IDEAS
    42. Jonathan S. Leonard & David I. Levine & Laura Giuliano, 2010. "Customer Discrimination," The Review of Economics and Statistics, MIT Press, vol. 92(3), pages 670-678, August.
    43. Borjas, George J, 1999. "Immigration and Welfare Magnets," Journal of Labor Economics, University of Chicago Press, vol. 17(4), pages 607-637, October.
    44. repec:adr:anecst:y:2010:i:99-100:p:09 is not listed on IDEAS
    45. Chiswick, Barry R. & Miller, Paul W., 2004. "Where Immigrants Settle in the United States," IZA Discussion Papers 1231, Institute of Labor Economics (IZA).
    46. Bartel, Ann P, 1989. "Where Do the New U.S. Immigrants Live?," Journal of Labor Economics, University of Chicago Press, vol. 7(4), pages 371-391, October.
    47. Lawrence M. Kahn, 1991. "Discrimination in Professional Sports: A Survey of the Literature," ILR Review, Cornell University, ILR School, vol. 44(3), pages 395-418, April.
    48. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    49. Aslund, Olof, 2005. "Now and forever? Initial and subsequent location choices of immigrants," Regional Science and Urban Economics, Elsevier, vol. 35(2), pages 141-165, March.
    50. Leah Platt Boustan, 2010. "Was Postwar Suburbanization "White Flight"? Evidence from the Black Migration," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(1), pages 417-443.
    51. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162.
    52. Verdugo, Gregory, 2011. "Public Housing and Residential Segregation of Immigrants in France, 1968-1999," IZA Discussion Papers 5456, Institute of Labor Economics (IZA).
    53. Kevin Lang & Michael Manove & William T. Dickens, 2005. "Racial Discrimination in Labor Markets with Posted Wage Offers," American Economic Review, American Economic Association, vol. 95(4), pages 1327-1340, September.
    54. James H. Stock & Motohiro Yogo, 2002. "Testing for Weak Instruments in Linear IV Regression," NBER Technical Working Papers 0284, National Bureau of Economic Research, Inc.
    55. Kahn, Lawrence M & Sherer, Peter D, 1988. "Racial Differences in Professional Basketball Players' Compensation," Journal of Labor Economics, University of Chicago Press, vol. 6(1), pages 40-61, January.
    56. Pedersen, Peder J. & Pytlikova, Mariola & Smith, Nina, 2008. "Selection and network effects--Migration flows into OECD countries 1990-2000," European Economic Review, Elsevier, vol. 52(7), pages 1160-1186, October.
    57. repec:cai:poeine:pope_1101_0169 is not listed on IDEAS
    58. Collins, Wiiliam J., 1997. "When the Tide Turned: Immigration and the Delay of the Great Black Migration," The Journal of Economic History, Cambridge University Press, vol. 57(3), pages 607-632, September.
    59. repec:spo:wpecon:info:hdl:2441/5l6uh8ogmqildh09h482kc28p is not listed on IDEAS
    60. Claire L. Adida & David D. Laitin & Marie-Anne Valfort, 2016. "?One Muslim is Enough!? Evidence from a Field Experiment in France," Annals of Economics and Statistics, GENES, issue 121-122, pages 121-160.
    61. Kerwin Kofi Charles & Jonathan Guryan, 2008. "Prejudice and Wages: An Empirical Assessment of Becker's The Economics of Discrimination," Journal of Political Economy, University of Chicago Press, vol. 116(5), pages 773-809, October.
    62. Conley, T.G. & Topa, G., 1999. "Socio-Economic Distance and Spatial Patterns in Unemployment," Working Papers 99-04, C.V. Starr Center for Applied Economics, New York University.
    63. repec:hal:wpspec:info:hdl:2441/5l6uh8ogmqildh09h482kc28p is not listed on IDEAS
    64. John F. Kain, 1968. "Housing Segregation, Negro Employment, and Metropolitan Decentralization," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 82(2), pages 175-197.
    65. Sundstrom, William A., 2007. "The Geography of Wage Discrimination in the Pre–Civil Rights South," The Journal of Economic History, Cambridge University Press, vol. 67(2), pages 410-444, June.
    66. Zenou, Yves, 2012. "Networks in Economics," CEPR Discussion Papers 9021, C.E.P.R. Discussion Papers.
    67. David, Quentin & Janiak, Alexandre & Wasmer, Etienne, 2010. "Local social capital and geographical mobility," Journal of Urban Economics, Elsevier, vol. 68(2), pages 191-204, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:hal:spmain:info:hdl:2441/2tlvpn71ve888pnch88db9g683 is not listed on IDEAS
    2. repec:spo:wpmain:info:hdl:2441/2tlvpn71ve888pnch88db9g683 is not listed on IDEAS
    3. 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.
    4. Laouénan, Morgane, 2014. "'Can't Get Enough': Prejudice, Contact Jobs and the Racial Wage Gap in the US," IZA Discussion Papers 8006, Institute of Labor Economics (IZA).
    5. 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.
    6. Morgane Laouenan, 2017. "‘Hate at First Sight’: Evidence of Consumer Discrimination Against African-Americans in the US," SciencePo Working papers Main hal-01514654, HAL.
    7. Hubert Jayet & Glenn Rayp & Ilse Ruyssen & Nadiya Ukrayinchuk, 2016. "Immigrants’ location choice in Belgium," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 57(1), pages 63-89, July.
    8. repec:eee:labchp:v:3:y:1999:i:pc:p:3143-3259 is not listed on IDEAS
    9. Zhiling Wang & Thomas de Graaff & Peter Nijkamp, 2018. "Barriers of Culture, Networks, and Language in International Migration: A Review," REGION, European Regional Science Association, vol. 5, pages 73-89.
    10. 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.
    11. repec:spo:wpmain:info:hdl:2441/6tj1d1vl8a8goacd5b3ogpmn8j is not listed on IDEAS
    12. David Neumark & Harry Holzer, 2000. "Assessing Affirmative Action," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 483-568, September.
    13. 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.
    14. Tito Boeri & Marta De Philippis & Eleonora Patacchini & Michele Pellizzari, 2015. "Immigration, Housing Discrimination and Employment," Economic Journal, Royal Economic Society, vol. 125(586), pages 82-114, August.
    15. Michel Dimou & Samuel Ettouati & Alexandra Schaffar, 2020. "From dusk till dawn: the residential mobility and location preferences of immigrants in France," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 65(2), pages 253-280, October.
    16. repec:hal:spmain:info:hdl:2441/6tj1d1vl8a8goacd5b3ogpmn8j is not listed on IDEAS
    17. repec:wsr:ecbook:2010:i:ii-008 is not listed on IDEAS
    18. Committee, Nobel Prize, 2021. "Answering causal questions using observational data," Nobel Prize in Economics documents 2021-2, Nobel Prize Committee.
    19. Nina Neubecker & Marcel Smolka & Anne Steinbacher, 2017. "Networks And Selection In International Migration To Spain," Economic Inquiry, Western Economic Association International, vol. 55(3), pages 1265-1286, July.
    20. Sari Pekkala Kerr & William R. Kerr, 2011. "Economic Impacts of Immigration: A Survey," Finnish Economic Papers, Finnish Economic Association, vol. 24(1), pages 1-32, Spring.
    21. Kahanec, Martin, 2012. "Skilled Labor Flows: Lessons from the European Union," IZA Research Reports 49, Institute of Labor Economics (IZA).
    22. Lewis, Ethan & Peri, Giovanni, 2015. "Immigration and the Economy of Cities and Regions," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 625-685, Elsevier.
    23. Majid Ahmadi & Gwen-Jiro Clochard & Jeff Lachman & John List, 2025. "Toward an Understanding of Discrimination When Multiple Channels Exist," Framed Field Experiments 00802, The Field Experiments Website.
    24. Kevin Lang & Jee-Yeon K. Lehmann, 2012. "Racial Discrimination in the Labor Market: Theory and Empirics," Journal of Economic Literature, American Economic Association, vol. 50(4), pages 959-1006, December.
    25. Rathelot, Roland, 2014. "Ethnic differentials on the labor market in the presence of asymmetric spatial sorting: Set identification and estimation," Regional Science and Urban Economics, Elsevier, vol. 48(C), pages 154-167.
    26. Marcus H. Böhme & Sarah Kups, 2017. "The economic effects of labour immigration in developing countries: A literature review," OECD Development Centre Working Papers 335, OECD Publishing.

    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

    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:ucp:jlabec:doi:10.1086/682332. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journals Division (email available below). General contact details of provider: https://www.journals.uchicago.edu/JOLE .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.