STATISTICAL AND TASTE-BASED DISCRIMINATION: AN APPLICATION OF DISCRIMINATION DECOMPOSITION INDEX (DDI) USING FIRST- AND SECOND-GENERATION IMMIGRANTS

Giovanni Busetta

No 470, Working Papers from Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali

Abstract: Economic theory splits discrimination into statistical and tastebased. While the logic underlying the first one consists of using information on a group of individuals as proxy of a specific worker. In the case of taste-based, the discrimination against a group of individuals, is connected to a personal preference of the employer rather than any lack of information. This second kind of discrimination is incompatible with the maximization of entrepreneur's profits. To assess the difference between the two, we constructed a specific index of ethnic discrimination, capable to separate the two kinds of discrimination using native, first- and second- generation immigrants (Busetta et al., 2018; Busetta et al., 2020). The aim of this paper is to apply this Index, previously used only in the Italian context, to several European countries, using the dataset "Condition and Social Integration of Foreign Citizens, SCIF 2011-2012", to compare the levels of statistical and taste-based discrimination in different societies.

Keywords: Labor market discrimination; First- and second-generation immigrants; Statistical and taste-based discrimination. (search for similar items in EconPapers)
JEL-codes: C43 J15 J23 J64 J71 (search for similar items in EconPapers)
Pages: 13
Date: 2022-09
New Economics Papers: this item is included in nep-eur, nep-mig and nep-ure
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