Profit, morality and discrimination

Mathieu Bunel and Elisabeth Tovar

Applied Economics, 2021, vol. 53, issue 40, 4692-4712

Abstract: Using an original vignette survey, we study the normative acceptability of the trade-off between immoral profit (discrimination) and costly morality (non-discrimination). We test the causal influence of three factors: i) the origin of discrimination, ii) the steepness of the morality/profit trade-off and iii) anti-discriminatory moral injunctions. Contrasting with past experimental and attitudinal studies, we find that a significant minority of respondents believe that labour market discrimination is acceptable when morality results in profit loss. We also find that the three tested factors have significant effects on normative opinions. Respondents are more likely to choose profit over morality when discrimination is taste-based than when it is caused by imperfect information. Discrimination’s acceptability rises with the cost of non discrimination. Anti-discriminatory moral injunctions sharply reduce the acceptability of profitable discrimination.

Date: 2021
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DOI: 10.1080/00036846.2021.1907285

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