The Impact of Being Monitored on Discriminatory Behavior among Employers: Evidence from a Natural Experiment
Today there is a variation within the EU to what extent nations allow for situation test results to constitute mass of evidence in court in order to prevent ethnic discrimination. In the UK The Equality and Human Rights Commission has the right to conduct discrimination tests and to even prosecute firms, implying that discriminating firms face the risk of a significant penalty. Other European countries have been reluctant to use such tests as a tool for counteracting discrimination and discuss a much softer version with only monitoring. In this study two labor market field experiments, sending qualitatively identical job applications with randomly assigned Swedish and Middle Eastern sounding names to employers, show that ethnic discrimination exists in hiring in the Swedish labor market. In both studies extensive media coverage occurred when being only halfway finished informing employers of their hiring practices being monitored by such situation testing. This study utilizes these unique events and the data from the experiments to perform a difference-in-differences analysis of whether discrimination decreased after the media coverage. The results reveal no sign of employers changing their hiring practices when being aware of running the risk of being included in such an experiment. This suggests that the detection risk alone is not sufficient if authorities wish to use field experiments as a discrimination prevention strategy. Instead, it must be combined with some penalty to become effective.
|Date of creation:||Jan 2009|
|Date of revision:|
|Publication status:||published as 'The Power of Media and Changes in Discriminatory Behavior Among Employers' in: Journal of Media Economics, 2012, 25 (2), 98-108|
|Contact details of provider:|| Postal: |
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp3972. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.