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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

Author

Listed:
  • Emmanuel Duguet

    (ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12)

  • Loïc Du Parquet

    (GAINS - ARGUMANS - Atelier De Recherche En Gestion De L'université Du Mans - GAINS - Groupe d'Analyse des Itinéraires et des Niveaux Salariaux - UM - Le Mans Université)

  • Yannick L'Horty

    (UPEM - Université Paris-Est Marne-la-Vallée)

  • Pascale Petit

    (EUREQUA - Equipe Universitaire de Recherche en Economie Quantitative - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

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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Suggested Citation

  • Emmanuel Duguet & Loïc Du Parquet & Yannick L'Horty & Pascale Petit, 2015. "First Order Stochastic Dominance and the Measurement of Hiring Discrimination: A Ranking Extension of Correspondence Testings with an Application to Gender and Origin," Post-Print hal-04265014, HAL.
    • Handle: RePEc:hal:journl:hal-04265014
    DOI: 10.2139/ssrn.2142432
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    Cited by:

    1. is not listed on IDEAS
    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. Birkelund, Gunn Elisabeth & Lancee, Bram & Larsen, Edvard Nergård & Polavieja, Javier G. & Radl, Jonas & Yemane, Ruta, 2022. "Gender Discrimination in Hiring: Evidence from a Cross-National Harmonized Field Experiment," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 38(3), pages 337-354.
    4. 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.
    5. repec:hal:journl:halshs-00877458 is not listed on IDEAS
    6. 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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