Does Labor Market Tightness Affect Ethnic Discrimination in Hiring?
2015 (English)Report (Other academic)
In this study, we investigate whether ethnic discrimination depends on labor market tightness. While ranking models predict a negative relationship, the prediction of screening models is ambiguous about the direction of the relationship. Thus, the direction of the relationship is purely an empirical issue. We utilize three (but combine into two) correspondence studies of the Swedish labor market and two distinctly different measures of labor market tightness. These different measures produce very similar results, showing that a one percent increase in labor market tightness increases ethnic discrimination in hiring by 0.5- 0.7 percent, which is consistent with a screening model. This result stands in sharp contrast to the only previous study on this matter, Baert et al. (forthcoming), which finds evidence that supports a ranking model.
Place, publisher, year, edition, pages
Working paper series / Linnaeus University Centre for Labour Market and Discrimination Studies, 2015:1
Hiring discrimination, ethnic discrimination, labor market tightness, field experiments, ranking models, screening models
Research subject Economy, Economics
IdentifiersURN: urn:nbn:se:lnu:diva-50306OAI: oai:DiVA.org:lnu-50306DiVA: diva2:909952