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

  • Pierre-Philippe COMBES

    ()

    (Aix-Marseille University (Aix-Marseille School of Economics), CNRS & EHESS)

  • Bruno DECREUSE

    ()

    (Aix-Marseille University (Aix-Marseille School of Economics), CNRS & EHESS)

  • Morgane LAOUENAN

    ()

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES) and Aix-Marseille University (Aix-Marseille School of Economics), CNRS & EHESS)

  • Alain TRANNOY

    ()

    (Aix-Marseille University (Aix-Marseille School of Economics), CNRS & EHESS)

The paper investigates the link between the over-exposure of African immigrants to unemployment in France and their under-representation in jobs in contact with customers. We build a two-sector matching model with ethnic sector-specifc 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 that there is both ethnic and customer discrimination in the French labor market.

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Paper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) with number 2013016.

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Length: 40
Date of creation: 28 Jun 2013
Handle: RePEc:ctl:louvir:2013016
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