Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/236469 
Year of Publication: 
2021
Series/Report no.: 
IZA Discussion Papers No. 14438
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Using a choice experiment, we test whether taste-based employee discrimination against ethnic minorities is susceptible to loss aversion. In line with empirical evidence from previous research, our results indicate that introducing a hypothetical wage penalty for discriminatory choice behaviour lowers discrimination and that higher penalties have a greater effect. Most notably, we find that the propensity to discriminate is significantly lower when this penalty is loss-framed rather than gain-framed. From a policy perspective, it could therefore be more effective to financially penalise taste-based discriminators than to incentivise them not to discriminate.
Subjects: 
taste-based discrimination
employee discrimination
loss aversion
ethnicity
JEL: 
J70
J24
J60
C92
Document Type: 
Working Paper

Files in This Item:
File
Size
502.88 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.