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

  • Combes, Pierre-Philippe

    ()

    (GATE, University of Lyon)

  • Decreuse, Bruno

    ()

    (GREQAM, University of Aix-Marseille)

  • Laouénan, Morgane

    ()

    (CNRS)

  • Trannoy, Alain

    ()

    (EHESS, Paris)

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.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 8150.

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Length: 48 pages
Date of creation: Apr 2014
Handle: RePEc:iza:izadps:dp8150
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