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Labor market discrimination in Lima, Peru: evidence from a field experiment

Author

Listed:
  • Francisco Galarza

    (Universidad del Pacífico)

  • Gustavo Yamada

    (Universidad del Pacífico)

Abstract

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.

Suggested Citation

  • Francisco Galarza & Gustavo Yamada, 2012. "Labor market discrimination in Lima, Peru: evidence from a field experiment," Working Papers 12-03, Centro de Investigación, Universidad del Pacífico.
  • Handle: RePEc:pai:wpaper:12-03
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    References listed on IDEAS

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    1. Alberto Chong & Hugo Ñopo, 2007. "Discrimination in Latin America: An Elephant in the Room?," Research Department Publications 4536, Inter-American Development Bank, Research Department.
    2. Hugo Ñopo, 2008. "Matching as a Tool to Decompose Wage Gaps," The Review of Economics and Statistics, MIT Press, pages 290-299.
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    4. Levitt, Steven D, 2004. "Testing Theories of Discrimination: Evidence from Weakest Link," Journal of Law and Economics, University of Chicago Press, vol. 47(2), pages 431-452, October.
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Pasquier-Doumer, Laure & Risso Brandon, Fiorella, 2015. "Aspiration Failure: A Poverty Trap for Indigenous Children in Peru?," World Development, Elsevier, pages 208-223.
    2. Pablo Lavado & Gustavo Yamada, 2013. "Fear of Labor Rigidities – The Role of Expectations in Employment Growth in Peru," Working Papers 13-16, Centro de Investigación, Universidad del Pacífico.
    3. Pablo Lavado & Gustavo Yamada, 2013. "Fear of Labor Rigidities – The Role of Expectations in Employment Growth in Peru," Working Papers 13-16, Centro de Investigación, Universidad del Pacífico.
    4. David Neumark, 2016. "Experimental Research on Labor Market Discrimination," NBER Working Papers 22022, National Bureau of Economic Research, Inc.
    5. Richard Chisik, 2010. "Job Market Signalling, Stereotype Threat, and Counter-Stereotypical Behavior," Working Papers 024, Ryerson University, Department of Economics, revised Oct 2013.
    6. Beam, Emily A. & Hyman, Joshua & Theoharides, Caroline, 2017. "The Relative Returns to Education, Experience, and Attractiveness for Young Workers," IZA Discussion Papers 10537, Institute for the Study of Labor (IZA).
    7. Yamada, Gustavo & Lavado, Pablo & Velarde, Luciana, 2013. "Habilidades No Cognitivas y Brecha de Género Salarial en el Perú," Working Papers 2013-014, Banco Central de Reserva del Perú.
    8. Francisco B. Galarza, 2017. "Trust and Trustworthiness in College: An Experimental Analysis," Working Papers 17-03, Centro de Investigación, Universidad del Pacífico.
    9. Marianne Bertrand & Esther Duflo, 2016. "Field Experiments on Discrimination," NBER Working Papers 22014, National Bureau of Economic Research, Inc.
    10. Richard Chisik, 2015. "Job market signalling, stereotype threat and counter-stereotypical behaviour," Canadian Journal of Economics, Canadian Economics Association, vol. 48(1), pages 155-188, February.
    11. repec:cem:jaecon:v:20:y:2017:n:1:p:29-47 is not listed on IDEAS
    12. Leda M. Pérez & Pedro Llanos Paredes, 2015. "¿Al fondo del escalafón?: un estado de la cuestión sobre el trabajo doméstico remunerado en el Perú," Working Papers 15-01, Centro de Investigación, Universidad del Pacífico.
    13. repec:eee:wdevel:v:96:y:2017:i:c:p:520-528 is not listed on IDEAS
    14. Francisco Galarza & Gustavo Yamada & Carlos Zelada, 2015. "Cuesta arriba para los afroperuanos: evidencia de la discriminación en el acceso al mercado laboral de Lima Metropolitana," Working Papers 15-03, Centro de Investigación, Universidad del Pacífico.
    15. Francisco Galarza & Gustavo Yamada, 2012. "Triple penalty in employment access : the role of beauty, race, and sex," Working Papers 12-13, Centro de Investigación, Universidad del Pacífico.
    16. Baert, Stijn, 2017. "Hiring Discrimination: An Overview of (Almost) All Correspondence Experiments Since 2005," IZA Discussion Papers 10738, Institute for the Study of Labor (IZA).
    17. repec:eee:wdevel:v:101:y:2018:i:c:p:1-15 is not listed on IDEAS

    More about this item

    Keywords

    Discrimination; experimental economics; audit studies;

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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