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The heterogeneity of ethnic employment gaps

Romain Aeberhard, Elise Coudin and Roland Rathelot
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Romain Aeberhard: CREST

CAGE Online Working Paper Series from Competitive Advantage in the Global Economy (CAGE)

Abstract: This paper investigates the heterogeneity of ethnic employment gaps using a new single-index based approach. Instead of stratifying our sample by age or education, we study ethnic employment gaps along a continuous measure of employability, the employment probability minority workers would have if their characteristics were priced as in the majority group. We apply this method to French males, comparing those whose parents are North African immigrants and those with native parents. We find that both the raw and the unexplained ethnic employment differentials are larger for low-employability workers than for high-employability ones. We show in a theoretical framework that this heterogeneity can be accounted for by homogeneous underlying mechanisms and is not evidence for, say, heterogeneous discrimination. Finally, we discuss our main empirical findings in the light of simple taste-based vs. statistical discrimination models.

Keywords: discrimination; employment differentials; decomposition JEL Classification: C14; C25; J70; J71 (search for similar items in EconPapers)
Date: 2016
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http://www2.warwick.ac.uk/fac/soc/economics/resear ... 90-2016_rathelot.pdf

Related works:
Journal Article: The heterogeneity of ethnic employment gaps (2017) Downloads
Working Paper: The heterogeneity of ethnic employment gaps (2016) Downloads
Working Paper: The Heterogeneity of Ethnic Employment Gaps (2014) Downloads
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