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Is Ethnic Discrimination Due to Distaste or Statistics?

Author

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  • Baert, Stijn

    () (Ghent University)

  • De Pauw, Ann-Sophie

    () (IÉSEG School of Management)

Abstract

Employing a lab experiment, we directly test the empirical importance of key attitudes underlying the models of taste-based and statistical discrimination in explaining ethnic hiring discrimination. We find evidence that employer concern that co-workers and customers will prefer collaborating with native individuals drives unequal treatment.

Suggested Citation

  • Baert, Stijn & De Pauw, Ann-Sophie, 2014. "Is Ethnic Discrimination Due to Distaste or Statistics?," IZA Discussion Papers 8319, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp8319
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    References listed on IDEAS

    as
    1. Stijn Baert & Bart Cockx & Niels Gheyle & Cora Vandamme, 2015. "Is There Less Discrimination in Occupations Where Recruitment Is Difficult?," ILR Review, Cornell University, ILR School, vol. 68(3), pages 467-500, May.
    2. Asaf Zussman, 2013. "Ethnic Discrimination: Lessons from the Israeli Online Market for Used Cars," Economic Journal, Royal Economic Society, vol. 123(11), pages 433-468, November.
    3. 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.
    4. Leo Kaas & Christian Manger, 2012. "Ethnic Discrimination in Germany's Labour Market: A Field Experiment," German Economic Review, Verein für Socialpolitik, vol. 13(1), pages 1-20, February.
    5. John A. List, 2004. "The Nature and Extent of Discrimination in the Marketplace: Evidence from the Field," The Quarterly Journal of Economics, Oxford University Press, vol. 119(1), pages 49-89.
    6. Jonathan Guryan & Kerwin Kofi Charles, 2013. "Taste‐based or Statistical Discrimination: The Economics of Discrimination Returns to its Roots," Economic Journal, Royal Economic Society, vol. 123(11), pages 417-432, November.
    7. Kerwin Kofi Charles & Jonathan Guryan, 2008. "Prejudice and Wages: An Empirical Assessment of Becker's The Economics of Discrimination," Journal of Political Economy, University of Chicago Press, vol. 116(5), pages 773-809, October.
    8. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-661, September.
    9. Stephan, Gesine & Dütsch, Matthias & Gückelhorn, Cathrin & Struck, Olaf, 2014. "When are bonus payments for managers perceived as fair? Results from a quasi-experiment," Economics Letters, Elsevier, vol. 125(1), pages 130-133.
    10. David H. Autor & David Scarborough, 2008. "Does Job Testing Harm Minority Workers? Evidence from Retail Establishments," The Quarterly Journal of Economics, Oxford University Press, vol. 123(1), pages 219-277.
    11. Armin Falk & Stephan Meier & Christian Zehnder, 2013. "Do Lab Experiments Misrepresent Social Preferences? The Case Of Self-Selected Student Samples," Journal of the European Economic Association, European Economic Association, vol. 11(4), pages 839-852, August.
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    Citations

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    Cited by:

    1. Baert, Stijn & Vujić, Sunčica, 2016. "Immigrant volunteering: A way out of labour market discrimination?," Economics Letters, Elsevier, vol. 146(C), pages 95-98.
    2. Hannah Van Borm & Ian Burn & Stijn Baert, 2019. "What Does a Job Candidate’s Age Signal to Employers?," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 19/984, Ghent University, Faculty of Economics and Business Administration.
    3. Baert, Stijn, 2015. "Hiring a Homosexual, Taking a Risk? A Lab Experiment on Employment Discrimination and Risk Aversion," IZA Discussion Papers 9536, Institute of Labor Economics (IZA).
    4. David Neumark, 2018. "Experimental Research on Labor Market Discrimination," Journal of Economic Literature, American Economic Association, vol. 56(3), pages 799-866, September.
    5. Van Belle, Eva & Caers, Ralf & De Couck, Marijke & Di Stasio, Valentina & Baert, Stijn, 2017. "Why Is Unemployment Duration a Sorting Criterion in Hiring?," IZA Discussion Papers 10876, Institute of Labor Economics (IZA).
    6. Zamora, Paula & Mantilla, Cesar & Blanco, Mariana, 2019. "Price discrimination in informal labor markets in Bogotá: An audit experiment during the 2018 FIFA World Cup," SocArXiv 6r5hf, Center for Open Science.
    7. Daniel Auer & Flavia Fossati, 2019. "The absent rewards of assimilation: how ethnic penalties persist in the Swiss labour market," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 17(2), pages 285-299, June.
    8. Élisabeth Tovar & Matthieu Bunel, 2019. "Profit vs morality: how unfair is labor market discrimination? Results from a survey experiment," EconomiX Working Papers 2019-25, University of Paris Nanterre, EconomiX.
    9. Koopmans, Ruud & Veit, Susanne & Yemane, Ruta, 2019. "Taste or statistics? A correspondence study of ethnic, racial and religious labour market discrimination in Germany," EconStor Open Access Articles, ZBW - Leibniz Information Centre for Economics, pages 233-252.
    10. Martin Abel, 2017. "Labor market discrimination and sorting: Evidence from South Africa," SALDRU Working Papers 205, Southern Africa Labour and Development Research Unit, University of Cape Town.
    11. Van Belle, Eva & Caers, Ralf & Cuypers, Laure & De Couck, Marijke & Neyt, Brecht & Van Borm, Hannah & Baert, Stijn, 2019. "What do student jobs on graduate CVs signal to employers?," GLO Discussion Paper Series 356, Global Labor Organization (GLO).
    12. Stephan Kampelmann & François Rycx, 2016. "Wage discrimination against immigrants: measurement with firm-level productivity data," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-24, December.
    13. Kübler, Dorothea & Schmid, Julia & Stüber, Robert, 2018. "Gender discrimination in hiring across occupations: a nationally-representative vignette study," Labour Economics, Elsevier, vol. 55(C), pages 215-229.

    More about this item

    Keywords

    hiring discrimination; statistical discrimination; taste discrimination; economics of ethnic minorities;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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