Veiling and the Economic Integration of Muslim Women in France

This paper provides the first empirical evidence on the economic costs of wearing the Islamic veil and on motives for veiling in a secular Western country. Using French observational data rather than small-scale interviews, we document a significant negative correlation between veiling and economic participation, even conditional on the respondent’s religious environment. Using a structural interpretation of a theoretical model of veiling and labor market participation, we then examine the various motivations behind the joint decision to veil and to be economically active. Our findings suggest that lower economic returns to integration, rather than religious preferences, account for most of the negative association. Additionally, our results emphasize the significance of personal religious motives in the decision to veil, rather than signaling piety to others.