Abstract
While statistical discrimination theory is often proposed as an important explanation for ethnic discrimination in hiring, research that empirically scrutinizes its underlying assumptions is scant. To test these assumptions, we combine data from a cross-national field experiment with secondary data indicative of the average labor productivity of ethnic communities. We find little evidence that adding diagnostic personal information reduces discrimination against ethnic minorities. Furthermore, we do not find an association between language similarity or the socioeconomic resources of the ethnic community and hiring discrimination. However, our findings show that discrimination is related to the socioeconomic development of the country of ancestry. Finally, the impact of these indicators of group productivity is generally not moderated by the amount of diagnostic personal information. Taken together, these findings question several core assumptions of statistical discrimination theory.
Highlights
Study upon study has shown that ethnic minorities are being discriminated against in hiring (Quillian et al 2017, 2019; Zschirnt and Ruedin 2016).1 Research further indicates that some ethnic minority groups face higher levels of discrimination than others (Ahmad 2019; Booth et al 2012; Weichselbaumer 2017; Zschirnt 2019)
In each of the five countries in our study, we examine thirty-one ethnic groups with varying socioeconomic backgrounds matched with three indicators of group-level labor productivity: (1) a measure combining aggregated information about educational and employment outcomes of ethnic minority groups in the country of desti nation (OECD 2010), (2) a measure of similarity between the language of the destination country and the dominant language in the country of origin (Holman et al, 2011; Wichmann et al 2018), and (3) a measure capturing the average level of socioeconomic development in the country of origin – that is, the Human Development Index (HDI) (United Nations Development Programme, 2018)
These indicators allow for differentiating between the productivity of the ethnic community and productivity linked to the country of ancestry. By distinguishing between these proximate and more distant in dicators of group productivity, we study the relative importance of different aspects of labor productivity in explaining ethnic discrimination in hiring
Summary
Study upon study has shown that ethnic minorities are being discriminated against in hiring (Quillian et al 2017, 2019; Zschirnt and Ruedin 2016). Research further indicates that some ethnic minority groups face higher levels of discrimination than others (Ahmad 2019; Booth et al 2012; Weichselbaumer 2017; Zschirnt 2019). Study upon study has shown that ethnic minorities are being discriminated against in hiring (Quillian et al 2017, 2019; Zschirnt and Ruedin 2016).. Becker 1957; Blumer 1958) – economic rationality and information deficiencies may explain ethnic discrimination in hiring (Baumle and Fossett 2005; Guryan and Charles 2013). Received 5 August 2019; Received in revised form 29 August 2020; Accepted 5 October 2020.
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