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Do Comparisons of Fictional Applicants Measure Discrimination When Search Externalities are Present? Evidence from Existing Experiments

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  • David C Phillips

Abstract

Researchers commonly measure discrimination by comparing responses to multiple fictional applicants sent to the same vacancy. I find evidence that these applications interact. Using data from several existing experiments, I find that applicants randomly assigned to compete against higher quality applicant pools receive more callbacks. In the presence of such spillovers, many experiments confound discrimination against an individual's characteristics with employers’ responses to the composition of the applicant pool. Under one reasonable set of assumptions, adjusting for applicant pool composition increases measured discrimination by 30% on average. Avoiding experimental designs that stratify treatment assignment by vacancy can eliminate such confounding.

Suggested Citation

  • David C Phillips, 2019. "Do Comparisons of Fictional Applicants Measure Discrimination When Search Externalities are Present? Evidence from Existing Experiments," The Economic Journal, Royal Economic Society, vol. 129(621), pages 2240-2264.
    • Handle: RePEc:oup:econjl:v:129:y:2019:i:621:p:2240-2264.
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    File URL: http://hdl.handle.net/10.1111/ecoj.12628
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    Cited by:

    1. Goulão, Catarina & Lacomba, Juan Antonio & Lagos, Francisco & Rooth, Dan-Olof, 2024. "Weight, attractiveness, and gender when hiring: A field experiment in Spain," Journal of Economic Behavior & Organization, Elsevier, vol. 218(C), pages 132-145.
    2. David Neumark, 2018. "Experimental Research on Labor Market Discrimination," Journal of Economic Literature, American Economic Association, vol. 56(3), pages 799-866, September.
    3. Nick Drydakis, 2024. "Artificial intelligence capital and employment prospects," Oxford Economic Papers, Oxford University Press, vol. 76(4), pages 901-919.
    4. Valfort, Marie-Anne, 2020. "Anti-Muslim discrimination in France: Evidence from a field experiment," World Development, Elsevier, vol. 135(C).
    5. Gordon B. Dahl & Matthew Knepper, 2023. "Age Discrimination across the Business Cycle," American Economic Journal: Economic Policy, American Economic Association, vol. 15(4), pages 75-112, November.
    6. Nüß, Patrick, 2017. "Duration Dependence as an Unemployment Stigma: Evidence from a Field Experiment in Germany," GLO Discussion Paper Series 88, Global Labor Organization (GLO).
    7. Derek Christopher, 2023. "Seeking sanctuary: Housing undocumented immigrants," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 42(4), pages 1065-1091, September.
    8. Peter Christensen & Ignacio Sarmiento-Barbieri & Christopher Timmins, 2022. "Housing Discrimination and the Toxics Exposure Gap in the United States: Evidence from the Rental Market," The Review of Economics and Statistics, MIT Press, vol. 104(4), pages 807-818, October.
    9. Tomlin, Bryan, 2024. "Pronoun usage and gender identity's effects on market outcomes: Evidence from a preregistered field experiment," Economics Letters, Elsevier, vol. 236(C).
    10. Ali Ahmed & Mark Granberg & Shantanu Khanna, 2021. "Gender discrimination in hiring: An experimental reexamination of the Swedish case," PLOS ONE, Public Library of Science, vol. 16(1), pages 1-15, January.
    11. Andrew Hanson & Zackary Hawley, 2023. "Restricted access: Real estate agent response to client race, ethnicity, gender, and side of market," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 51(4), pages 855-890, July.
    12. Gaddis, S. Michael, 2018. "An Introduction to Audit Studies in the Social Sciences," SocArXiv e5hfc, Center for Open Science.
    13. Antinyan, Armenak & Burn, Ian & Jones, Melanie K., 2024. "Productivity Signals and Disability-Related Hiring Discrimination: Evidence from a Field Experiment," IZA Discussion Papers 17290, Institute of Labor Economics (IZA).
    14. Gaddis, S. Michael & DiRago, Nicholas V., 2021. "Audit Studies of Housing in the United States: Established, Emerging, and Future Research," SocArXiv fn4ta, Center for Open Science.
    15. Egebark, Johan & Ekström, Mathias & Plug, Erik & van Praag, Mirjam, 2021. "Brains or beauty? Causal evidence on the returns to education and attractiveness in the online dating market," Journal of Public Economics, Elsevier, vol. 196(C).
    16. Catherine Balfe & Patrick Button & Mary Penn & David Schwegman, 2021. "Infrequent Identity Signals and Detection Risks in Audit Correspondence Studies," NBER Working Papers 28718, National Bureau of Economic Research, Inc.
    17. Granberg, Mark & Andersson, Per A. & Ahmed, Ali, 2020. "Hiring Discrimination Against Transgender People: Evidence from a Field Experiment," Labour Economics, Elsevier, vol. 65(C).

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