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Labor Market Discrimination in Lima, Peru: Evidence from a Field Experiment

  • Francisco Galarza

    ()

    (Departamento de Economía, Universidad del Pacífico)

  • Gustavo Yamada

    ()

    (Departamento de Economía, Universidad del Pacífico)

"Latin America is seen as a highly discriminatory society. However, such a common belief appears not to be based on strong empirical evidence (Chong and Ñopo, 2007). This paper exploits novel experimental data gathered to identify the existence of discrimination in the labor market of Lima, Peru, a fast-growing country where much anecdotal evidence suggests the presence of discriminatory practices at many instances of daily life. Focusing on two dimensions, sex (female/male) and surnames (indigenous/white), we sent 4,820 fictitious and equivalent CVs in response to 1,205 real job vacancies advertised in an important Peruvian newspaper. We randomly allocated indigenous and white surnames across CVs sent in application to professional, technical, and unskilled jobs. Overall, we find that males receive 20 percent more callbacks than females, and whites receive 80 percent more calls than indigenous applicants. Within job categories, we find sexual discrimination only in unskilled jobs, while discrimination against indigenous is verified across all job categories. There are no statistically significant differences in the time to receive a phone call among male/female, and white/indigenous applicants."

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File URL: http://www.up.edu.pe/ciup/SiteAssets/Lists/JER_Jerarquia/EditForm/12-03.pdf
File Function: First Version, 2012
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Paper provided by Departamento de Economía, Universidad del Pacífico in its series Working Papers with number 12-03.

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Length: 31 pages
Date of creation: Mar 2012
Date of revision: Mar 2012
Handle: RePEc:pai:wpaper:12-03
Contact details of provider: Web page: http://www.up.edu.pe/

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  1. Banerjee, Abhijit & Bertrand, Marianne & Datta, Saugato & Mullainathan, Sendhil, 2009. "Labor market discrimination in Delhi: Evidence from a field experiment," Journal of Comparative Economics, Elsevier, vol. 37(1), pages 14-27, March.
  2. Hugo Nopo, 2009. "The Gender Wage Gap in Peru 1986-2000: Evidence from a Matching Comparisons Approach," Research Department Publications 4618, Inter-American Development Bank, Research Department.
  3. Dan-Olof Rooth, 2009. "Obesity, Attractiveness, and Differential Treatment in Hiring: A Field Experiment," Journal of Human Resources, University of Wisconsin Press, vol. 44(3).
  4. Carlsson, Magnus & Rooth, Dan-Olof, 2007. "Evidence of ethnic discrimination in the Swedish labor market using experimental data," Labour Economics, Elsevier, vol. 14(4), pages 716-729, August.
  5. Hugo Nopo, 2003. "Matching as a Tool to Decompose Wage Gaps," Middlebury College Working Paper Series 0406, Middlebury College, Department of Economics.
  6. Mobius, Markus & Rosenblat, Tanya, 2010. "Why Beauty Matters," Staff General Research Papers 32112, Iowa State University, Department of Economics.
  7. Magnus Carlsson & Dan-Olof Rooth, 2012. "Revealing taste-based discrimination in hiring: a correspondence testing experiment with geographic variation," Applied Economics Letters, Taylor & Francis Journals, vol. 19(18), pages 1861-1864, December.
  8. 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.
  9. Kaas, Leo & Manger, Christian, 2010. "Ethnic Discrimination in Germany's Labour Market: A Field Experiment," IZA Discussion Papers 4741, Institute for the Study of Labor (IZA).
  10. Steven D. Levitt, 2003. "Testing Theories of Discrimination: Evidence from "Weakest Link"," NBER Working Papers 9449, National Bureau of Economic Research, Inc.
  11. López Bóo, Florencia & Rossi, Martín A. & Urzua, Sergio, 2012. "The Labor Market Return to an Attractive Face: Evidence from a Field Experiment," IZA Discussion Papers 6356, Institute for the Study of Labor (IZA).
  12. Dennis J. Aigner & Glen G. Cain, 1977. "Statistical Theories of Discrimination in Labor Markets," ILR Review, Cornell University, ILR School, vol. 30(2), pages 175-187, January.
  13. Bradley J. Ruffle & Ze’ev Shtudiner, 2010. "Are Good-Looking People More Employable?," Working Papers 1006, Ben-Gurion University of the Negev, Department of Economics.
  14. Petra Moser, 2008. "An Empirical Test of Taste-based Discrimination Changes in Ethnic Preferences and their Effect on Admissions to the NYSE during World War I," NBER Working Papers 14003, National Bureau of Economic Research, Inc.
  15. Daniel S. Hamermesh & Jeff E. Biddle, 1993. "Beauty and the Labor Market," NBER Working Papers 4518, National Bureau of Economic Research, Inc.
  16. Doris Weichselbaumer, 2000. "Is it sex or personality? The impact of sex-stereotypes on discrimination in applicant selection," Economics working papers 2000-11, Department of Economics, Johannes Kepler University Linz, Austria.
  17. P. A. Riach & J. Rich, 2002. "Field Experiments of Discrimination in the Market Place," Economic Journal, Royal Economic Society, vol. 112(483), pages 480-518, November.
  18. James J. Heckman, 1998. "Detecting Discrimination," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 101-116, Spring.
  19. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-61, September.
  20. Moreno, Martín & Ñopo, Hugo & Saavedra, Jaime & Torero, Máximo, 2012. "Detecting Gender and Racial Discrimination in Hiring Through Monitoring Intermediation Services: The Case of Selected Occupations in Metropolitan Lima, Peru," World Development, Elsevier, vol. 40(2), pages 315-328.
  21. 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.
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