Measuring Taste-Based Employment Discrimination Between Females and Males

Employment discrimination may impede disadvantaged groups’ career advancement or, even worse, may hinder the groups’ access to desirable jobs. Moreover, discriminatory employment practices result in a huge loss of revenue to prejudiced firms. Due to the disastrous impacts of employment discrimination on the economic climate, we seek to measure taste-based employment discrimination between women and men in the Dominican Republic, Egypt, Hungary, Peru, UK, and Uruguay. To fulfill the aim, we estimate two regression models for the female and male workforce and then analyze differences between the coefficients of the explanatory variables in the models to examine the existence of taste-based employment discrimination caused by the tastes of customers and co-workers, and employers. Results indicate that the long-run taste-based employment discrimination between women and men has existed in the countries. In addition to taste-based discrimination, if employers select their workforce on the basis of productivity, the results demonstrate that statistical discrimination can occur in the countries.