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The heterogeneity of ethnic employment gaps

Author

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  • Romain Aeberhardt

    (Centre de Recherche en Économie et Statistique (CREST))

  • Elise Coudin

    (Centre de Recherche en Économie et Statistique (CREST))

  • Roland Rathelot

    (University of Warwick)

Abstract

This paper investigates the heterogeneity of ethnic employment gaps using a new single-index based approach. Instead of stratifying our sample by age or education, we study ethnic employment gaps along a continuous measure of employability, the employment probability minority workers would have if their characteristics were priced as in the majority group. We apply this method to French males, comparing those whose parents are North African immigrants and those with native parents. We find that both the raw and the unexplained ethnic employment differentials are larger for low-employability workers than for high-employability ones. We show in a theoretical framework that this heterogeneity can be accounted for by homogeneous underlying mechanisms and is not evidence for, say, heterogeneous discrimination. Finally, we discuss our main empirical findings in the light of simple taste-based vs. statistical discrimination models.

Suggested Citation

  • Romain Aeberhardt & Elise Coudin & Roland Rathelot, 2016. "The heterogeneity of ethnic employment gaps," CReAM Discussion Paper Series 1610, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  • Handle: RePEc:crm:wpaper:1610
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    Cited by:

    1. Paul Bisschop & Bas Weel & Jelle Zwetsloot, 2020. "Ethnic Employment Gaps of Graduates in the Netherlands," De Economist, Springer, vol. 168(4), pages 577-598, December.
    2. Lippens, Louis & Baert, Stijn & Ghekiere, Abel & Verhaeghe, Pieter-Paul & Derous, Eva, 2020. "Is labour market discrimination against ethnic minorities better explained by taste or statistics? A systematic review of the empirical evidence," GLO Discussion Paper Series 615, Global Labor Organization (GLO).
    3. Stefan C. Wolter & Maria Zumbuehl, 2017. "The Native-Migrant Gap in the Progression into and through Upper-Secondary Education," CESifo Working Paper Series 6810, CESifo.
    4. Bisschop, Paul & ter Weel, Bas & Zwetsloot, Jelle, 2020. "Ethnic Employment Gaps of Graduates in the Netherlands," IZA Discussion Papers 13750, Institute of Labor Economics (IZA).
    5. Paul Bisschop & Bas ter Weel & Jelle Zwetsloot, 2020. "Ethnic employment gaps of graduates in the Netherlands," Tinbergen Institute Discussion Papers 20-068/V, Tinbergen Institute.
    6. Simonetta Longhi, 2020. "Does geographical location matter for ethnic wage gaps?," Journal of Regional Science, Wiley Blackwell, vol. 60(3), pages 538-557, June.

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    More about this item

    Keywords

    discrimination; employment differentials; decomposition;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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