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First Order Stochastic Dominance and the Measurement of Hiring Discrimination: A ranking extension of correspondence testings with an application to gender and origin

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  • Emmanuel Duguet
  • Loïc Du Parquet
  • Yannick L’Horty
  • Pascale Petit

Abstract

We extend the standard hiring discrimination measure by including the cases where several candidates are invited to the same interview. The new measure considers the order in which the employer will contact the candidates as opposed to considering only whether or not a job applicant is invited to an interview - a practice common in the previous literature. We propose to apply the first order stochastic dominance (FOSD) criterion to the ranking of the candidates, which appears to be especially relevant for hiring discrimination. We show theoretically that FOSD always implies a positive value for the standard discrimination coefficient used in the literature, and that the converse is false. We apply our analysis to a correspondence testing that has been conducted in the Paris region. We sent 8 fictitious candidates with a Master's degree to the same 310 job offers in computing in order to measure gender and origin discrimination. We found that - out of 28 possible comparisons - there are 25 cases of stochastic dominance that we interpret as strong discrimination against some candidates. In our application, the standard discrimination coefficient tends to underestimate the degree of discrimination.
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  • Emmanuel Duguet & Loïc Du Parquet & Yannick L’Horty & Pascale Petit, 2012. "First Order Stochastic Dominance and the Measurement of Hiring Discrimination: A ranking extension of correspondence testings with an application to gender and origin," Erudite Working Paper 2012-12, Erudite.
  • Handle: RePEc:eru:erudwp:wp12-12
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    References listed on IDEAS

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    1. David Neumark & Roy J. Bank & Kyle D. Van Nort, 1996. "Sex Discrimination in Restaurant Hiring: An Audit Study," The Quarterly Journal of Economics, Oxford University Press, vol. 111(3), pages 915-941.
    2. Emmanuel Duguet & Pascale Petit, 2005. "Hiring discrimination in the French financial sector: an econometric analysis on field experiment data," Annals of Economics and Statistics, GENES, issue 78, pages 79-102.
    3. P. A. Riach & J. Rich, 2002. "Field Experiments of Discrimination in the Market Place," Economic Journal, Royal Economic Society, vol. 112(483), pages 480-518, November.
    4. James J. Heckman, 1998. "Detecting Discrimination," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 101-116, Spring.
    5. 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.
    6. repec:adr:anecst:y:2005:i:78:p:04 is not listed on IDEAS
    7. Michael Firth, 1981. "Racial Discrimination in the British Labor Market," ILR Review, Cornell University, ILR School, vol. 34(2), pages 265-272, January.
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    Cited by:

    1. Emmanuel Duguet & Christine Le Clainche, 2014. "The Effect of Non-Work Related Health Events on Career Outcomes: An Evaluation in the French Labor Market," Revue d'économie politique, Dalloz, vol. 124(3), pages 437-465.
    2. 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.
    3. Nicolas Jacquemet, 2013. "2. Discriminations à l'embauche : quelle ampleur, quelles solutions ?," Regards croisés sur l'économie, La Découverte, vol. 0(1), pages 49-63.

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