Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/320495 
Year of Publication: 
2025
Series/Report no.: 
IZA Discussion Papers No. 17901
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Hungary's sizeable Roma minority is hit by massive prejudice. Using 2011 Census data and supplementary sources, we study how ethnic bias translates to employment discrimination in local labor markets. The male ethnic employment gap, adjusted for a rich battery of controls, was 20-40 percent wider than average if, and only if, the local population strongly supported an openly anti-Roma far-right party and, at the same time, small firms had a substantial share in the local economy. Roma women's (very low) employment is less responsive to prejudice and the small firm share. The results for men, the sole breadwinners in most Roma families, survive robustness checks and confrontation with alternative explanations. Since small firms easily elude the anti-discrimination regulations, the results draw attention to the limits of legal instruments and call for active policy.
Subjects: 
minorities
discrimination
regional labor markets
small firms
JEL: 
J15
J71
R23
D22
Document Type: 
Working Paper

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