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Is Ethnic Discrimination Due to Distaste or Statistics?

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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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    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. Kaas Leo & Manger Christian, 2012. "Ethnic Discrimination in Germany’s Labour Market: A Field Experiment," German Economic Review, De Gruyter, 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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    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. 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).
    3. Hannah Van Borm & Marlot Dhoop & Allien Van Acker & Stijn Baert, 2020. "What does someone's gender identity signal to employers?," International Journal of Manpower, Emerald Group Publishing, vol. 41(6), pages 753-777, March.
    4. Baert, Stijn & Lippens, Louis & Moens, Eline & Weytjens, Johannes & Sterkens, Philippe, 2020. "The COVID-19 Crisis and Telework: A Research Survey on Experiences, Expectations and Hopes," IZA Discussion Papers 13229, Institute of Labor Economics (IZA).
    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. Elisabeth Tovar & Mathieu Bunel, 2019. "Profit vs morality: how unfair is labor market discrimination? Results from a survey experiment," Post-Print hal-02459378, HAL.
    7. 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.
    8. Van Belle, Eva & Caers, Ralf & Cuypers, Laure & De Couck, Marijke & Neyt, Brecht & Van Borm, Hannah & Baert, Stijn, 2020. "What do student jobs on graduate CVs signal to employers?," Economics of Education Review, Elsevier, vol. 75(C).
    9. Paula Zamora & César Mantilla & Mariana Blanco, 2021. "Price discrimination in informal labor markets in Bogotá: an audit experiment during the 2018 FIFA World Cup," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 55(1), pages 1-24, December.
    10. 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.
    11. Van Borm, Hannah & Burn, Ian & Baert, Stijn, 2019. "What Does a Job Candidate's Age Signal to Employers?," IZA Discussion Papers 12849, Institute of Labor Economics (IZA).
    12. Paula Zamora & César Mantilla & Mariana Blanco, 2021. "Price discrimination in informal labor markets in Bogotá: an audit experiment during the 2018 FIFA World Cup," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 55(1), pages 1-24, December.
    13. Sterkens, Philippe & Baert, Stijn & Rooman, Claudia & Derous, Eva, 2020. "As If It Weren't Hard Enough Already: Breaking down Hiring Discrimination Following Burnout," IZA Discussion Papers 13514, Institute of Labor Economics (IZA).
    14. 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.
    15. David Neumark, 2018. "Experimental Research on Labor Market Discrimination," Journal of Economic Literature, American Economic Association, vol. 56(3), pages 799-866, September.
    16. 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.
    17. Philippe Sterkens & Stijn Baert & Claudia Rooman & Eva Derous, 2020. "As if it weren’t hard enough already: Breaking down hiring discrimination following burnout A causal machine learning evaluation of training in Belgium," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 20/1000, Ghent University, Faculty of Economics and Business Administration.
    18. Eva Zschirnt, 2020. "Evidence of Hiring Discrimination Against the Second Generation: Results from a Correspondence Test in the Swiss Labour Market," Journal of International Migration and Integration, Springer, vol. 21(2), pages 563-585, June.
    19. 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.
    20. Kübler, Dorothea & Schmid, Julia & Stüber, Robert, 2018. "Gender discrimination in hiring across occupations: a nationally-representative vignette study," EconStor Open Access Articles, ZBW - Leibniz Information Centre for Economics, pages 215-229.

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    More about this item

    Keywords

    hiring discrimination; statistical discrimination; taste discrimination; economics of ethnic minorities;
    All these keywords.

    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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