Customer Discrimination and Employment Outcomes: Theory and Evidence from the French Labor Market

Combes, Pierre-Philippe; Decreuse, Bruno; Laouénan, Morgane; Trannoy, Alain

doi:10.1086/682332

Cited by 42 publications

(36 citation statements)

References 54 publications

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“…Discrimination against visible minorities is prevalent across Europe regardless of the host‐country's migration history and political/economic policy (Heath and Cheung, ; Nordin and Rooth, ; Friberg and Midtbøen, ). In France, ethnic minorities experience persistent discrimination in the labour market (Ware, ) and those identified as black experience hiring discrimination (Riach and Rich, ) and are underrepresented in jobs involving customer contact (Combes et al., ). Even after controlling for education, there is a significant employment gap between visible minority groups and native‐born French (Langevin et al., ).…”

Section: Literature Reviewmentioning

confidence: 99%

Does Country Context Matter? Sub‐Saharan and North African Immigrants’ Labour Market Outcomes in France and Spain

Tesfai

2018

International Migration

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European debates on immigrant integration focus on employment because of its implications for assimilation. Although studies show that Sub‐Saharan African immigrants are most disadvantaged across Europe, cross‐national analyses do not examine labour force participation (LFP) or control for selection into the labour force before estimating employment, calling these results into question. Furthermore, studies rarely discuss visible minority status or gender making it unclear whether (1) country‐context matters for African LFP and employment and (2) visible minority status matters differently by gender. I use French and Spanish census data to determine whether Sub‐Saharan Africans are most disadvantaged in new and traditional receiving countries. My results indicate that country‐context matters, but previous employment findings likely reflect variation in LFP. Despite smaller penalties to migration characteristics in Spain, Sub‐Saharan African men are the only group significantly less likely to be employed in Spain, indicating that they experience unique barriers to job access.

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Section: Literature Reviewmentioning

confidence: 99%

Does Country Context Matter? Sub‐Saharan and North African Immigrants’ Labour Market Outcomes in France and Spain

Tesfai

2018

International Migration

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“…They thus suffer from a situation of regional spatial mismatch, which may account for part of their much higher unemployment rate (Combes, Decreuse, Laouénan, and Trannoy 2016). If this is the case, the social consequences of housing market discrimination can therefore be so negative that they justify the intervention of policymakers.…”

Section: Resultsmentioning

confidence: 99%

“…This strategy has been used in a variety of contexts, especially on the labor market. The two closest papers to our are Charles and Guryan (2008), who use it to assess the impact of state-wide racial prejudice on Black/White wage differentials in the US and Combes, Decreuse, Laouénan, and Trannoy (2016) who use it to assess the impact of the share of jobs in contact with customers and the proportion of non-immigrants, at the employment area level, on the unemployment gap between African immigrants and non-immigrants in France. 18 Results First step- Table E1 in Appendix E displays the estimation results of increasingly complex specifications of an equation of the probability of living in HLM.…”

Section: Empirical Strategymentioning

confidence: 99%

“…Customer vs neighbor discrimination.-Our paper is obviously related to the literature focused on customer discrimination in the labor market (Borjas and Bronars 1989, Nardinelli and Simon 1990, Holzer and Ihlanfeldt 1998, Combes, Decreuse, Laouénan, and Trannoy 2016. However, beyond similarities, neighbor and customer discrimination differ.…”

Section: Introductionmentioning

confidence: 99%

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Neighbor Discrimination. Theory and Evidence from the French Rental Market

et al. 2016

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This paper describes a novel concept of customer discrimination in the housing market, neighbor discrimination. We build up a matching model with ethnic externalities where landlords differ in the number of apartments they own within the same building. Larger landlords discriminate more often only if some tenants are prejudiced against the minority group. Testing the null hypothesis whereby minority tenants are equally likely to have a large landlord provides a natural test for the existence of neighbor discrimination. In an empirical application, we show that this null hypothesis is rejected for African immigrants in the French private rental market. We then show that the local proportion of large landlords is positively correlated with African tenants' probability of living in public housing, whereas this is not the case of other demographic groups.JEL codes: R21, J71.

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“…They may also consider minority workers to be, on average, less productive and assign their average productivity to all minority applicants if productivity is not observed during the recruitement process (Phelps, 1972). Finally, they may avoid employing minority workers because they expect their customers to be reluctant interacting with them (Borjas and Bronars, 1989;Combes et al, 2011).…”

Section: Introductionmentioning

confidence: 99%