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The Impact of Being Monitored on Discriminatory Behavior among Employers: Evidence from a Natural Experiment
University of Kalmar, Baltic Business School.ORCID iD: 0000-0002-5620-4745
2009 (English)In: European Association of Labour Economists Conference, Tallin, Estland,2009, 2009Conference paper, (Refereed)
Abstract [en]

Today there is a variation within the EU to what extent nations allow for situation test results toconstitute mass of evidence in court in order to prevent ethnic discrimination. In the UK TheEquality and Human Rights Commission has the right to conduct discrimination tests and to evenprosecute firms, implying that discriminating firms face the risk of a significant penalty. OtherEuropean countries have been reluctant to use such tests as a tool for counteractingdiscrimination and discuss a much softer version with only monitoring. In this study two labormarket field experiments, sending qualitatively identical job applications with randomly assignedSwedish and Middle Eastern sounding names to employers, show that ethnic discriminationexists in hiring in the Swedish labor market. In both studies extensive media coverage occurredwhen being only halfway finished informing employers of their hiring practices being monitoredby such situation testing. This study utilizes these unique events and the data from theexperiments to perform a difference-in-differences analysis of whether discrimination decreasedafter the media coverage. The results reveal no sign of employers changing their hiring practiceswhen being aware of running the risk of being included in such an experiment. This suggeststhat the detection risk alone is not sufficient if authorities wish to use field experiments as adiscrimination prevention strategy. Instead, it must be combined with some penalty to becomeeffective.Keywords/JEL-Code: ethnic discrimination correspondence testing field experiments J64, J71

Place, publisher, year, edition, pages
2009.
National Category
Economics
Research subject
Economy, Economics
Identifiers
URN: urn:nbn:se:lnu:diva-4920OAI: oai:DiVA.org:lnu-4920DiVA: diva2:314807
Conference
European Association of Labour Economists (EALE), Annual Conference 10 - 12 September 2009, Tallinn
Note

Nummer:

Available from: 2010-04-28 Created: 2010-04-28 Last updated: 2015-01-16Bibliographically approved

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CiteExportLink to record
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Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf