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Testing for redlining in the labour market

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  • Yannick L'Horty
  • Mathieu Bunel
  • Pascale Petit

Abstract

When an employer refuses to recruit a job applicant due to the applicant's place of residence, we speak of redlining in the labour market. There are two explanations for this practice by the employer. The first is the excessive distance between the applicant's place of residence and the workplace, justified by a logic of spatial mismatch. The second is based on the characteristics of the neighbourhood in line with a signal logic. We propose to measure the effects of these two mechanisms using a correspondence test conducted in the Paris region of France for two occupations: waiters and cooks. It appears that distance plays a significant role and reinforces the effect of a disreputable neighbourhood. The most deprived neighbourhoods combine these two types of drawbacks.

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  • Yannick L'Horty & Mathieu Bunel & Pascale Petit, 2019. "Testing for redlining in the labour market," Spatial Economic Analysis, Taylor & Francis Journals, vol. 14(2), pages 153-173, April.
    • Handle: RePEc:taf:specan:v:14:y:2019:i:2:p:153-173
    DOI: 10.1080/17421772.2019.1559347
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    3. Diaz, Ana Maria & Salas, Luz Magdalena, 2020. "Do firms redline workers?," Regional Science and Urban Economics, Elsevier, vol. 83(C).
    4. Zanoni, Wladimir & Acevedo, Paloma & Hernández, Hugo, 2022. "Job Market Discrimination against Slum Dwellers in Urban Argentina," IDB Publications (Working Papers) 12122, Inter-American Development Bank.
    5. Magnus Carlsson & Stefan Eriksson, 2023. "Do employers avoid hiring workers from poor neighborhoods? Experimental evidence from the real labor market," Scandinavian Journal of Economics, Wiley Blackwell, vol. 125(2), pages 376-402, April.
    6. Sylvain Chareyron & Laetitia Challe & Yannick L'Horty & Pascale Petit, 2020. "The failure of the “Emplois Francs” scheme: evaluation with repeated testing," Erudite Working Paper 2020-02, Erudite.

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