Ethnic discrimination against second-generation immigrants in hiring: empirical evidence from a correspondence test

Abstract

ABSTRACT This article presents the findings of a field experiment on ethnic discrimination against second-generation immigrants in the Finnish labour market. Five job applicants of Finnish, English, Iraqi, Russian and Somali origin sent equivalent job applications to each of 1000 publicly advertised vacancies. They all had identical qualifications, but differed in one respect, that is, their name. The findings strongly suggest the existence of ethnic hierarchical orderings in the labour market. They reflect that locally gained human capital not only does not equalise employment opportunities for immigrants as such but also rewards them differentially based on their origin, with non-European applicants being the least preferred choices. The findings also reveal that discrimination did not only manifest itself in low callback rates for immigrants but also the order in which employers contacted the different applicants. In addition, no significant differences in discrimination towards the four immigrant groups were observed in cases where employers explicitly sought different types of soft skills in applicants such as trustworthiness and being motivated. Drawing on empirical observations, the article suggests that ethnic hierarchies prevailing in society can also extend to the realm of labour markets resulting in unequal employment chances for otherwise equal job applicants.