Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/125053
Authors: 
Baert, Stijn
Year of Publication: 
2015
Series/Report no.: 
IZA Discussion Papers 9536
Abstract: 
We investigate risk aversion as a driver of labour market discrimination against homosexual men. We show that more hiring discrimination by more risk-averse employers is consistent with taste-based and statistical discrimination. To test this hypothesis we conduct a scenario experiment in which experimental employers make a hiring decision concerning a heterosexual or homosexual job candidate. In addition, participants are surveyed on their risk aversion and other characteristics that might correlate with this risk aversion. Analysis of the (post-)experimental data confirms our hypothesis. The probability of a beneficial hiring decision for homosexual candidates decreases by 31.7% when employers are a standard deviation more risk-averse.
Subjects: 
hiring discrimination
statistical discrimination
sexual orientation
scenario experiment
risk aversion
JEL: 
C91
J15
J71
Document Type: 
Working Paper

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