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Endophilia or exophobia: beyond discrimination

  • Feld, J.F.

    (General Economics 2 (Macro))

  • Salamanca Acosta, N.

    (General Economics 2 (Macro))

  • Hamermesh, D.

    (Externe publicaties SBE)

The immense literature on discrimination treats outcomes as relative: One group suffers compared to another. But does a difference arise because agents discriminate against others—are exophobic—or because they favor their own kind—are endophilic? This difference matters, as the relative importance of the types of discrimination and their inter-relation affect market outcomes. Using a field experiment in which graders at one university were randomly assigned students’ exams that did or did not contain the students’ names, on average we find favoritism but no discrimination by nationality, and neither favoritism nor discrimination by gender, findings that are robust to a wide variety of potential concerns. We observe heterogeneity in both discrimination and favoritism by nationality and by gender in the distributions of graders’ preferences. We show that a changing correlation between endophilia and exophobia can generate perverse predictions for observed market discrimination.

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Paper provided by Maastricht University, Graduate School of Business and Economics (GSBE) in its series Research Memorandum with number 026.

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Date of creation: 01 Jan 2013
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Handle: RePEc:unm:umagsb:2013026
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  1. Matthew S. Goldberg, 1982. "Discrimination, Nepotism, and Long-Run Wage Differentials," The Quarterly Journal of Economics, Oxford University Press, vol. 97(2), pages 307-319.
  2. Fershtman, Chaim & Gneezy, Uri & Verboven, Frank, 2002. "Discrimination and Nepotism: The Efficiency of the Anonymity Rule," CEPR Discussion Papers 3175, C.E.P.R. Discussion Papers.
  3. Tyrefors Hinnerich, Björn & Höglin, Erik & Johannesson, Magnus, 2010. "Are boys discriminated in Swedish high schools?," Working Paper Series 2010:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
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  8. Arulampalam, Wiji & Booth, Alison L. & Bryan, Mark L., 2004. "Is There a Glass Ceiling over Europe? Exploring the Gender Pay Gap across the Wages Distribution," IZA Discussion Papers 1373, Institute for the Study of Labor (IZA).
  9. Alan E. Dillingham & Marianne A. Ferber & Daniel S. Hamermesh, 1994. "Gender Discrimination by Gender: Voting in a Professional Society," ILR Review, Cornell University, ILR School, vol. 47(4), pages 622-633, July.
  10. John List & Steven Levitt, 2007. "What do Laboratory Experiments Measuring Social Preferences Reveal About the Real World," Artefactual Field Experiments 00480, The Field Experiments Website.
  11. Christina M. Fong & Erzo F. P. Luttmer, 2009. "What Determines Giving to Hurricane Katrina Victims? Experimental Evidence on Racial Group Loyalty," American Economic Journal: Applied Economics, American Economic Association, vol. 1(2), pages 64-87, April.
  12. 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.
  13. Lavy, Victor, 2008. "Do gender stereotypes reduce girls' or boys' human capital outcomes? Evidence from a natural experiment," Journal of Public Economics, Elsevier, vol. 92(10-11), pages 2083-2105, October.
  14. Stephen G. Donald & Daniel S. Hamermesh, 2006. "What is Discrimination? Gender in the American Economic Association, 1935-2004," American Economic Review, American Economic Association, vol. 96(4), pages 1283-1292, September.
  15. Giuliano, Laura & Levine, David I. & Leonard, Jonathan, 2009. "Racial Bias in the Manager-Employee Relationship: An Analysis of Quits, Dismissals, and Promotions at a Large Retail Firm," Institute for Research on Labor and Employment, Working Paper Series qt8pm012h0, Institute of Industrial Relations, UC Berkeley.
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