2018
DOI: 10.1257/app.20150241
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The Price of Prejudice

Abstract: We present a new type of field experiment to investigate ethnic prejudice in the workplace. Our design allows us to study how potential discriminators respond to changes in the cost of discrimination. We find that ethnic discrimination is common but highly responsive to the "price of prejudice," i.e., to the opportunity cost of choosing a less productive worker on ethnic grounds. Discriminators are on average willing to forego 8 percent of their earnings to avoid a coworker of the other ethnic type. The eviden… Show more

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Cited by 53 publications
(57 citation statements)
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“…This approach is informative about the direction of preferences, but does not yield WTP measures. Hedegaard and Tyran (2014) focus on preferences on the ethnic background of co-workers. that we advertised thereby approximating a market choice.…”
Section: Introductionmentioning
confidence: 99%
“…This approach is informative about the direction of preferences, but does not yield WTP measures. Hedegaard and Tyran (2014) focus on preferences on the ethnic background of co-workers. that we advertised thereby approximating a market choice.…”
Section: Introductionmentioning
confidence: 99%
“…across daycares with or without ethnic minorities. In the terminology of (Becker, 1971), and, more recently (Charles & Guryan, 2008) (Hedegaard & Tyran, 2018), the travel distance across our randomized treatments may provide a measure of the "price of prejudice" in the form of the opportunity cost of choosing a daycare that requires more daily transportation due to ethnic composition considerations. Figure A1 and A2 in the appendix show WTT for parents who prefer structured daycare and free-play daycare under each treatment (except treatment 0: NoNames),…”
Section: Willingness To Travel (Wtt) To Favored Choicementioning
confidence: 99%
“…Employing 169 Danish school students (aged 16-20) for a large mailing task, Hedegaard and Tyran (2014) used a fully controlled intervention to manipulate decision makers' costs and information. Recruited to prepare letters at piece rate for 2 × 90 minutes, students were first invited to work single-handedly in separate rooms at the University of Copenhagen.…”
Section: Extended Field Experimental Designsmentioning
confidence: 99%