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Stijn Baert Bart Cockx Niels Gheyle Cora Vandamme

Stijn Baert Bart Cockx Niels Gheyle Cora Vandamme. Ethnic discrimination in the Flemish labour market for school leavers. Jonas in preference to Okan ? Evidence from a field experiment in the youth labour market. 0. Motivating gaps. Potential explanations for gaps.

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Stijn Baert Bart Cockx Niels Gheyle Cora Vandamme

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  1. Stijn Baert Bart Cockx Niels Gheyle Cora Vandamme Ethnic discrimination in the Flemish labour market for school leavers. Jonas in preference to Okan? Evidence from a field experiment in the youth labour market

  2. 0. Motivating gaps Potential explanations for gaps • Differences in supply side endowments • Differences in supply side preferences and behaviour • Differences in demand side preferences and behaviour Baert, Cockx, Gheyle, Vandamme (2012)

  3. Do employers discriminate against foreign school leavers? Doemployersdiscriminate against foreign school leavers? Doemployersdiscriminate against foreign school leavers? 1. Research question 1 Employers in Belgium • Comprehensive anti-discrimination legislation • High unemployment among ethnic minorities Research population school leavers • “Target group for intensive labour market assistance” • Scarring effects Baert, Cockx, Gheyle, Vandamme (2012)

  4. 1. Research question 2 Do employers discriminate less if vacancies are difficult to fill? Baert, Cockx, Gheyle, Vandamme (2012)

  5. 2. Research methodology Pairs of fictitious job applications are sent to real job openings. • Both applications differ only by the minority status of the candidate. • By monitoring the subsequent call back, discrimination is identified. “Golden standard” to identify discrimination in the labour market • Employer discrimination is disentangled from supply side determinants of LM outcomes. • Selection on unobservable characteristics is not an issue. Bertrand and Mullainathan (AER, 2004) is seminal work. Correspondence methodology Baert, Cockx, Gheyle, Vandamme (2012)

  6. 2. Research methodology Research design (1) CURRICULUM VITAE TYPE A PROFESSIONAL BACHELOR IN BUSINESS ADMINISTRATION CURRICULUM VITAE TYPE A VOCATIONAL SECONDARY EDUCATION IN METALLURGY CURRICULUM VITAE TYPE A VOCATIONAL SECONDARY EDUCATION IN ORGANIZATION HELP CURRICULUM VITAE TYPE A TECHNICAL SECONDARY EDUCATION IN COMMERCE CURRICULUM VITAE TYPE B PROFESSIONAL BACHELOR IN BUSINESS ADMINISTRATION CURRICULUM VITAE TYPE B VOCATIONAL SECONDARY EDUCATION IN METALLURGY CURRICULUM VITAE TYPE B VOCATIONAL SECONDARY EDUCATION IN ORGANIZATION HELP CURRICULUM VITAE TYPE B TECHNICAL SECONDARY EDUCATION IN COMMERCE Baert, Cockx, Gheyle, Vandamme (2012)

  7. 2. Research methodology Research design (2) CURRICULUM VITAE TYPE A PROFESSIONAL BACHELOR IN BUSINESS ADMINISTRATION JONAS MERTENS CURRICULUM VITAE TYPE B PROFESSIONAL BACHELOR IN BUSINESS ADMINISTRATION OKAN DEMIR CURRICULUM VITAE TYPE A PROFESSIONAL BACHELOR IN BUSINESS ADMINISTRATION CURRICULUM VITAE TYPE B PROFESSIONAL BACHELOR IN BUSINESS ADMINISTRATION Vacancy N Baert, Cockx, Gheyle, Vandamme (2012)

  8. 2. Research methodology Positive call back Research design (3) • Sensu stricto: invitation for interview • Sensu lato: any positive reaction CURRICULUM VITAE TYPE A PROFESSIONAL BACHELOR IN BUSINESS ADMINISTRATION OKAN DEMIR CURRICULUM VITAE TYPE B PROFESSIONAL BACHELOR IN BUSINESS ADMINISTRATION JONAS MERTENS CURRICULUM VITAE TYPE A PROFESSIONAL BACHELOR IN BUSINESS ADMINISTRATION CURRICULUM VITAE TYPE B PROFESSIONAL BACHELOR IN BUSINESS ADMINISTRATION Vacancy N+1 Call Back Call Back Baert, Cockx, Gheyle, Vandamme (2012)

  9. 3. Research methodology Each vacancy can be matched with a profession following the AMI-classification. For each profession we know the labour market tension. • Median duration time (in 2011) of job openings for this profession • Bottleneck status (in 2011) of this profession How is “difficult to fill” (high labour market tension) measured? Research design (4) Vacancy 1 Vacancy 2 Vacancy 3 ... Vacancy 376 Profession X Profession Y Profession Z ... Profession Y Baert, Cockx, Gheyle, Vandamme (2012)

  10. 3. Research results Descriptive statistics Baert, Cockx, Gheyle, Vandamme (2012)

  11. 3. Research results Do employers discriminate against foreign school leavers?Yes! Do employers discriminate less if Vacancies are difficult to fill? Yes! Main regression results 0 Baert, Cockx, Gheyle, Vandamme (2012)

  12. 3. Research results Conducted sensitivity analyses Sensitivity analysis • Alternative outcome variable • Any positive reaction • Alternative tension variable • Median vacancy duration time for profession • Additional interactions with origin • Education level, customer contact, fraction foreign workers in sector • Alternative model • Linear probability model • Heteroskedastic probit model Baert, Cockx, Gheyle, Vandamme (2012)

  13. 4. Conclusion Hiring discrimination against foreign school leavers still apparent in Belgian LM. Hiring discrimination is lower for professions for which labour market tension is high • Employers use labour market power to discriminate against foreign school leavers Hiring discrimination is lower for high-skilled professions. Research conclusions Baert, Cockx, Gheyle, Vandamme (2012)

  14. 3. Research results Conducted sensitivity analyses Alternative outcome variable • Any positive reaction Alternative tension variable • Median vacancy duration time for profession Additional interactions with origin • Education level, customer contact, fraction foreign workers in sector Alternative model • Linear probability model • Heteroskedastic probit model Further sensitivity analyses (1) Conducted sensitivity analyses • Alternative outcome variable • Any positive reaction • Alternative tension variable • Median vacancy duration time for profession • Additional interactions with origin • Education level, customer contact fraction foreign workers in sector • Alternative model • Linear probability model • Heteroskedastic probit model Baert, Cockx, Gheyle, Vandamme (2012)

  15. 3. Research results Conducted sensitivity analyses Further sensitivity analyses (2) • Alternative outcome variable • Any positive reaction • Alternative tension variable • Median vacancy duration time for profession • Additional interactions with origin • Education level, customer contact, fraction foreign workers in sector • Alternative model • Linear probability model • Heteroskedastic probit model Baert, Cockx, Gheyle, Vandamme (2012)

  16. 3. Research results Sensitivity analyses Further sensitivity analyses (3) Heteroskedastic probit model • Alternative outcome variable • Any positive reaction • Alternative tension variable • Median vacancy duration time for profession • Additional interactions with origin • Education level, customer contact, fraction foreign workers in sector • Alternative model • Linear probability model • Heteroskedastic probit model • Critique (Heckman and Siegelman, 1993): differences in variance of unobs. characteristics can generate spurious evidence of discrimination. • Solution: heteroskedastic probit • allows variance of error term to vary with ethnicity Baert, Cockx, Gheyle, Vandamme (2012)

  17. 3. Research results Sensitivity analyses Further sensitivity analyses (4) • Alternative outcome variable • Any positive reaction • Alternative tension variable • Median vacancy duration time for profession • Additional interactions with origin • Education level, customer contact, fraction foreign workers in sector • Alternative model • Linear probability model • Heteroskedastic probit model Baert, Cockx, Gheyle, Vandamme (2012)

  18. 3. Research results Conducted sensitivity analyses Further sensitivity analyses (5) • Alternative outcome variable • Any positive reaction • Alternative tension variable • Median vacancy duration time for profession • Additional interactions with origin • ... • Male recruiter • Alternative model • Linear probability model • Heteroskedastic probit model Baert, Cockx, Gheyle, Vandamme (2012)

  19. 3. Research results Conducted sensitivity analyses Further sensitivity analyses (6) • Alternative outcome variable • Any positive reaction • Alternative tension variable • Median vacancy duration time for profession • Additional interactions with origin • Education level, customer contact, fraction foreign workers in sector • Alternative model • Linear probability model • Heteroskedastic probit model Baert, Cockx, Gheyle, Vandamme (2012)

  20. 4. Conclusion Policy advice • Need for discrimination detection (and punishment). • Need for awareness campaigns presenting success stories. • Stimulation of labour market competition is in favour of equal treatment. Baert, Cockx, Gheyle, Vandamme (2012)

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