Abstract
Types of discrimination are usually distinguished by economic theory in statistical and taste-based. Using a correspondence experiment, we analyze which of the two affects Italian labor market the most. In this respect, we studied the difference in discrimination reserved to first- and second-generation immigrants, taking gender differences into account. Even if we want to admit a rational discrimination based on perceived productivity differences (statistical discrimination) against first-generation immigrants (concerning language and education gaps), the same would not be reasonable for second-generation ones. Since they are born and educated in Italy, where they have always lived, the associated discrimination must be taste-based.
Highlights
According to Arrow (1973), reasons for discrimination can be analyzed from an economic perspective
Types of discrimination are usually distinguished by economic theory in statistical and taste-based
We studied the difference in discrimination reserved to first- and second-generation immigrants, taking gender differences into account
Summary
According to Arrow (1973), reasons for discrimination can be analyzed from an economic perspective. The US National Research Council defines racial or ethnic discrimination focusing on “differential treatment on the basis of race that disadvantages a racial group, and treatment on the basis of inadequately justified factors other than race that disadvantages a racial group” (Blank et al 2004). Types of discrimination are usually distinguished by economic theory in statistical and taste-based. The former occurs when the judgment of an individual depends on group characteristics rather than the individuals. The latter occurs, instead, when a group of individuals (either employers or customers) prefer a certain group over another, based on tastes, rather than any economic rationale (see e.g., Lahey 2008 for a Busetta et al Genus (2018) 74:4 review of this literature). The second case includes xenophobia and racism, and different kinds of personal preferences, the common point being that an employer discriminates against a group of individuals irrespective of the other information he/she has about the candidate (Zschirnt and Ruedin 2016)
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