IDEAS home Printed from https://ideas.repec.org/p/col/000416/017218.html
   My bibliography  Save this paper

Do Firms Redline Workers?

Author

Listed:
  • Ana María Díaz; Luz Magdalena Salas
  • Luz Magdalena Salas

Abstract

Firms statistically discriminate (redline) against job candidates based on where they live. We conducted a correspondence test by sending three identical fictitious resumes to every non professional job offer posted in two main job vacancy newspapers in Bogota. The only difference between the resumes was the residential address in which the applicants lived. Two of the three resumes sent in each trio were located at the same commuting time (and geographical distance) from the job, but one resided in a low-crime neighborhood and the other in a high-crime neighborhood. The third resume was for a fictitious individual located in a low-crime neighborhood that is further away (longer commuting time and greater distance). Our experimental design allows us to explore whether employers discriminate against potential employees based on where they live, and if they do, which mechanisms are behind their discriminatory preferences. Building on the urban economics literature, we test two potential mechanisms: statistical discrimination due to negative signaling neighborhood effects and statistical discrimination based on commuting time to work. If any of these hold, we would expect employers to offer interviews to job applicants who reside in deprived or distant neighborhoods less often. We find that employers statistically discriminate (redline) based on commuting time to work. In particular, living one hour away from the vacancy reduces the callback rate by 32 percent while holding the attributes of the place of residence constant. We did not find evidence that employers respond to negative signaling effects or engages in taste based-discrimination.

Suggested Citation

  • Ana María Díaz; Luz Magdalena Salas & Luz Magdalena Salas, 2019. "Do Firms Redline Workers?," Vniversitas Económica 017218, Universidad Javeriana - Bogotá.
  • Handle: RePEc:col:000416:017218
    as

    Download full text from publisher

    File URL: https://drive.google.com/file/d/1bVxVx69RdzOwx4Fzc0mz_ogn0ZOg4T1G/view
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Carlsson, Magnus & Abrar Reshid, Abdulaziz & Rooth, Dan-Olof, 2018. "Neighborhood Signaling Effects, Commuting Time, and Employment: Evidence from a Field Experiment," IZA Discussion Papers 11284, Institute of Labor Economics (IZA).
    2. repec:adr:anecst:y:2010:i:99-100:p:09 is not listed on IDEAS
    3. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-661, September.
    4. Yannick L'Horty & Mathieu Bunel & Pascale Petit, 2019. "Testing for redlining in the labour market," Spatial Economic Analysis, Taylor & Francis Journals, vol. 14(2), pages 153-173, April.
    5. repec:adr:anecst:y:2010:i:99-100 is not listed on IDEAS
    6. Wasmer, Etienne & Zenou, Yves, 2006. "Equilibrium search unemployment with explicit spatial frictions," Labour Economics, Elsevier, vol. 13(2), pages 143-165, April.
    7. Zenou, Yves, 2002. "How do firms redline workers?," Journal of Urban Economics, Elsevier, vol. 52(3), pages 391-408, November.
    8. Smith, Tony E. & Zenou, Yves, 2003. "Spatial mismatch, search effort, and urban spatial structure," Journal of Urban Economics, Elsevier, vol. 54(1), pages 129-156, July.
    9. Keith Finlay, 2009. "Effect of Employer Access to Criminal History Data on the Labor Market Outcomes of Ex-Offenders and Non-Offenders," NBER Chapters, in: Studies of Labor Market Intermediation, pages 89-125, National Bureau of Economic Research, Inc.
    10. 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.
    11. Guzman, Luis A. & Oviedo, Daniel, 2018. "Accessibility, affordability and equity: Assessing ‘pro-poor’ public transport subsidies in Bogotá," Transport Policy, Elsevier, vol. 68(C), pages 37-51.
    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. Perez Perez, Jorge, 2020. "City Minimum Wages and Spatial Equilibrium Effects," SocArXiv fpx9e, Center for Open Science.

    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. 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.
    2. Mathieu Bunel & Yannick L’Horty & Pascale Petit, 2016. "Discrimination based on place of residence and access to employment," Urban Studies, Urban Studies Journal Limited, vol. 53(2), pages 267-286, February.
    3. GOBILLON Laurent & SELOD Harris, 2007. "The effects of segregation and spatial mismatch on unemployment: evidence from France," Research Unit Working Papers 0702, Laboratoire d'Economie Appliquee, INRA.
    4. Zenou, Yves, 2009. "Urban search models under high-relocation costs. Theory and application to spatial mismatch," Labour Economics, Elsevier, vol. 16(5), pages 534-546, October.
    5. Åslund, Olof & Blind, Ina & Dahlberg, Matz, 2017. "All aboard? Commuter train access and labor market outcomes," Regional Science and Urban Economics, Elsevier, vol. 67(C), pages 90-107.
    6. Emmanuel Duguet & David Gray & Yannick L'Horty & Loïc du Parquet & Pascale Petit, 2020. "Labour market effects of urban riots: An experimental assessment," Papers in Regional Science, Wiley Blackwell, vol. 99(3), pages 787-806, June.
    7. Zenou, Yves, 2007. "Why do Black Workers Search Less? A Transport-Mode Based Theory," CEPR Discussion Papers 6155, C.E.P.R. Discussion Papers.
    8. Denis Anne, 2019. "Aides à la mobilité et insertion sociale," Erudite Ph.D Dissertations, Erudite, number ph19-03 edited by Yannick L'Horty, November.
    9. Mbaye, Souleymane & Bunel, Mathieu & L'Horty, Yannick & Petit, Pascale & Parquet, Loïc du, 2020. "Discriminations in the market for “Lemons”: A multicriteria correspondence test in France," Economics of Transportation, Elsevier, vol. 24(C).
    10. Anthony Edo & Nicolas Jacquemet & Constantine Yannelis, 2019. "Language skills and homophilous hiring discrimination: Evidence from gender and racially differentiated applications," Review of Economics of the Household, Springer, vol. 17(1), pages 349-376, March.
    11. repec:mse:cesdoc:09059r is not listed on IDEAS
    12. Anthony Edo & Nicolas Jacquemet, 2013. "Discrimination à l'embauche selon l'origine et le genre : défiance indifférenciée ou ciblée sur certains groupes ?," Économie et Statistique, Programme National Persée, vol. 464(1), pages 155-172.
    13. Claire Dujardin & Florence Goffette-Nagot, 2009. "Does public housing occupancy increase unemployment?," Journal of Economic Geography, Oxford University Press, vol. 9(6), pages 823-851, November.
    14. Sylvain Barde, 2007. "Stable Partial Agglomeration in a New Economic Geography Model with Urban Frictions," Sciences Po publications 07/02, Sciences Po.
    15. Souleymane Mbaye, 2019. "Trois évaluations d’actions de lutte contre les discriminations," Erudite Ph.D Dissertations, Erudite, number ph19-01 edited by Pascale Petit, November.
    16. Yannick L'Horty & Mathieu Bunel & Pascale Petit, 2019. "Testing for redlining in the labour market," Spatial Economic Analysis, Taylor & Francis Journals, vol. 14(2), pages 153-173, April.
    17. Olof Åslund & John Östh & Yves Zenou, 2010. "How important is access to jobs? Old question--improved answer," Journal of Economic Geography, Oxford University Press, vol. 10(3), pages 389-422, May.
    18. 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.
    19. Valfort, Marie-Anne, 2020. "Anti-Muslim discrimination in France: Evidence from a field experiment," World Development, Elsevier, vol. 135(C).
    20. Vincent Boitier, 2013. "Endogenous city size in urban search models: the case of high reallocation costs," ERSA conference papers ersa13p590, European Regional Science Association.
    21. Wasmer, Etienne & Zenou, Yves, 2006. "Equilibrium search unemployment with explicit spatial frictions," Labour Economics, Elsevier, vol. 13(2), pages 143-165, April.

    More about this item

    Keywords

    statistical discrimination; productivity; employment; experiment; neighborhoods effects; spatial mismatch; correspondence test.;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:col:000416:017218. 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: . General contact details of provider: .

    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: Mayerly Galindo Rodriguez (email available below). General contact details of provider: .

    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.