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Indiscriminate Discrimination: A Correspondence Test for Ethnic Homophily in the Chicago Labor Market

The extent of racial discrimination in the labor market is now clearly identified, but its nature largely remains an open question. This paper reports results from an experiment in which fabricated resumes are sent to help-wanted advertisements in Chicago newpapers. We use three groups of identical resumes: one with Anglo-Saxon names, one with African-American names and one with fictitious foreign names whose ethnic origin is unidentifiable to most Americans. We find that resumes with Anglo-Saxon names generate nearly one half more call-backs than identical resumes with African-American or Foreign names. Resumes with non-Anglo-Saxon names, whether African-American or Foreign, show no statistically significant difference in the number of callbacks they elicit. We also find that discrimination is significantly higher in the Chicago suburbs - where ethnic homogenity is high - as opposed to the city proper. We take this as evidence that discriminatory behavior is part of a larger pattern of unequal treatment of any member of non-majority groups - ethnic homophily.

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Paper provided by Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne in its series Documents de travail du Centre d'Economie de la Sorbonne with number 11013.

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Length: 19 pages
Date of creation: Feb 2011
Date of revision:
Handle: RePEc:mse:cesdoc:11013
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  16. David T. Ellwood, 1986. "The Spatial Mismatch Hypothesis: Are There Teenage Jobs Missing in the Ghetto?," NBER Chapters, in: The Black Youth Employment Crisis, pages 147-190 National Bureau of Economic Research, Inc.
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  18. Goldberg, Matthew S, 1982. "Discrimination, Nepotism, and Long-Run Wage Differentials," The Quarterly Journal of Economics, MIT Press, vol. 97(2), pages 307-19, May.
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  23. Chaim Fershtman & Uri Gneezy & Frank Verboven, 2005. "Discrimination and Nepotism: The Efficiency of the Anonymity Rule," The Journal of Legal Studies, University of Chicago Press, vol. 34(2), pages 371-396, 06.
  24. Marianne Bertrand & Dolly Chugh & Sendhil Mullainathan, 2005. "Implicit Discrimination," American Economic Review, American Economic Association, vol. 95(2), pages 94-98, May.
  25. Alesina, Alberto & La Ferrara, Eliana, 2005. "Ethnic Diversity and Economic Performance," Scholarly Articles 4553005, Harvard University Department of Economics.
  26. Booth, Alison L & Leigh, Andrew & Varganova, Elena, 2010. "Does Racial and Ethnic Discrimination Vary Across Minority Groups? Evidence From a Field Experiment," CEPR Discussion Papers 7913, C.E.P.R. Discussion Papers.
  27. Michael A. Stoll & Harry J. Holzer & Keith R. Ihlanfeldt, 2000. "Within cities and suburbs: Racial residential concentration and the spatial distribution of employment opportunities across sub-metropolitan areas," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 19(2), pages 207-231.
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