Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/223965 
Year of Publication: 
2020
Series/Report no.: 
IZA Discussion Papers No. 13523
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Scholars have gone to great lengths to chart the incidence of ethnic labour market discrimination. To effectively mitigate this discrimination, however, we need to understand its underlying mechanisms because different mechanisms lead to different counteracting measures. To this end, we reviewed the recent literature that confronts the seminal theories of taste-based and statistical discrimination against the empirical reality. First, we observed that the measurement operationalisation of the mechanisms varied greatly between studies, necessitating the development of a measurement standard. Second, we found that 20 out of 30 studies examining taste-based discrimination and 18 out of 34 studies assessing statistical discrimination produced supportive evidence for said mechanisms. However, (field) experimental research, which predominantly focuses on hiring outcomes, yielded more evidence in favour of taste-based vis-à-vis statistical discrimination, suggesting that the taste-based mechanism might better explain ethnic discrimination in hiring.
Subjects: 
taste-based discrimination
statistical discrimination
ethnicity
race
labour market
systematic review
JEL: 
J71
J15
J23
Document Type: 
Working Paper

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