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

Author

Listed:
  • Combes, Pierre-Philippe

    (GATE, University of Lyon)

  • Decreuse, Bruno

    (Aix-Marseille University)

  • Laouénan, Morgane

    (CNRS)

  • Trannoy, Alain

    (EHESS, Paris)

Abstract

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-specific 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.

Suggested Citation

  • Combes, Pierre-Philippe & Decreuse, Bruno & Laouénan, Morgane & Trannoy, Alain, 2014. "Customer Discrimination and Employment Outcomes: Theory and Evidence from the French Labor Market," IZA Discussion Papers 8150, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp8150
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    More about this item

    Keywords

    local labor markets; ethnic unemployment; jobs in contact; matching frictions; discrimination;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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