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Does Labor Market Tightness Affect Ethnic Discrimination in Hiring?

Author

Listed:
  • Carlsson, Magnus

    () (Linnaeus University)

  • Fumarco, Luca

    () (STATEC Research – National Institute of Statistics and Economic Studies)

  • Rooth, Dan-Olof

    () (Stockholm University)

Abstract

Several studies using observational data suggest that ethnic discrimination increases in downturns of the economy. We investigate whether ethnic discrimination depends on labor market tightness using data from correspondence studies. We utilize three correspondence studies of the Swedish labor market and two different measures of labor market tightness. These two measures produce qualitatively similar results, and, opposite to the observational studies, suggests that ethnic discrimination in hiring decreases in downturns of the economy.

Suggested Citation

  • Carlsson, Magnus & Fumarco, Luca & Rooth, Dan-Olof, 2018. "Does Labor Market Tightness Affect Ethnic Discrimination in Hiring?," IZA Discussion Papers 11285, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp11285
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    References listed on IDEAS

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    1. Kory Kroft & Fabian Lange & Matthew J. Notowidigdo, 2013. "Duration Dependence and Labor Market Conditions: Evidence from a Field Experiment," The Quarterly Journal of Economics, Oxford University Press, vol. 128(3), pages 1123-1167.
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    5. Stefan Eriksson & Jonas Lagerström, 2012. "Detecting discrimination in the hiring process: evidence from an Internet-based search channel," Empirical Economics, Springer, vol. 43(2), pages 537-563, October.
    6. Carlsson, Magnus & Rooth, Dan-Olof, 2007. "Evidence of ethnic discrimination in the Swedish labor market using experimental data," Labour Economics, Elsevier, vol. 14(4), pages 716-729, August.
    7. Stefan Eriksson & Dan-Olof Rooth, 2014. "Do Employers Use Unemployment as a Sorting Criterion When Hiring? Evidence from a Field Experiment," American Economic Review, American Economic Association, vol. 104(3), pages 1014-1039, March.
    8. Alison L. Booth & Andrew Leigh & Elena Varganova, 2012. "Does Ethnic Discrimination Vary Across Minority Groups? Evidence from a Field Experiment," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 74(4), pages 547-573, August.
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    10. Magnus Carlsson & Gordon B. Dahl & Dan-Olof Rooth, 2015. "Backlash in Policy Attitudes After the Election of Extreme Political Parties," NBER Working Papers 21062, National Bureau of Economic Research, Inc.
    11. Jeff Biddle & Daniel Hamermesh, 2013. "Wage discrimination over the business cycle," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-19, December.
    12. Vishwanath, Tara, 1989. "Job Search, Stigma Effect, and Escape Rate from Unemployment," Journal of Labor Economics, University of Chicago Press, vol. 7(4), pages 487-502, October.
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    14. Marianne Bertrand & Sendhil Mullainathan, 2004. "Are Emily and Greg More Employable Than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination," American Economic Review, American Economic Association, vol. 94(4), pages 991-1013, September.
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    Cited by:

    1. Asali, Muhammad & Pignatti, Norberto & Skhirtladze, Sophiko, 2018. "Employment discrimination in a former Soviet Union Republic: Evidence from a field experiment," Journal of Comparative Economics, Elsevier, vol. 46(4), pages 1294-1309.
    2. Sascha O. Becker & Ana Fernandes & Doris Weichselbaumer, 2018. "Fertility Discrimination in Hiring? Evidence from a Field Experiment," 2018 Meeting Papers 650, Society for Economic Dynamics.

    More about this item

    Keywords

    hiring discrimination; ethnic discrimination; labor market tightness; the business cycle; correspondence studies; field experiments; ranking models; screening models;

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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