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Statistical And Taste-Based Discrimination: An Application Of Discrimination Decomposition Index (Ddi) Using First- And Second-Generation Immigrants

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  • Giovanni Busetta

    (Department of Economics - Universita' di Messina)

Abstract

Economic theory splits discrimination into statistical and tastebased. While the logic underlying the first one consists of using information on a group of individuals as proxy of a specific worker. In the case of taste-based, the discrimination against a group of individuals, is connected to a personal preference of the employer rather than any lack of information. This second kind of discrimination is incompatible with the maximization of entrepreneur's profits. To assess the difference between the two, we constructed a specific index of ethnic discrimination, capable to separate the two kinds of discrimination using native, first- and second- generation immigrants (Busetta et al., 2018; Busetta et al., 2020). The aim of this paper is to apply this Index, previously used only in the Italian context, to several European countries, using the dataset "Condition and Social Integration of Foreign Citizens, SCIF 2011-2012", to compare the levels of statistical and taste-based discrimination in different societies.

Suggested Citation

  • Giovanni Busetta, 2022. "Statistical And Taste-Based Discrimination: An Application Of Discrimination Decomposition Index (Ddi) Using First- And Second-Generation Immigrants," Working Papers 470, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    • Handle: RePEc:anc:wpaper:470
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    References listed on IDEAS

    as
    1. Bursell, Moa, 2007. "What's in a name? A field experiment test for the existence of ethnic discrimination in the hiring process," SULCIS Working Papers 2007:7, Stockholm University, Linnaeus Center for Integration Studies - SULCIS.
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    3. Zschirnt, Eva & Ruedin, Didier, 2016. "Ethnic discrimination in hiring decisions: A meta-analysis of correspondence tests 1990–2015," EconStor Preprints 142176, ZBW - Leibniz Information Centre for Economics.
    4. Arrow, Kenneth J., 1973. "Higher education as a filter," Journal of Public Economics, Elsevier, vol. 2(3), pages 193-216, July.
    5. Joanna N. Lahey, 2008. "Age, Women, and Hiring: An Experimental Study," Journal of Human Resources, University of Wisconsin Press, vol. 43(1).
    6. Riach, Peter A & Rich, Judith, 1991. "Testing for Racial Discrimination in the Labour Market," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 15(3), pages 239-256, September.
    7. Jonathan Guryan & Kerwin Kofi Charles, 2013. "Taste‐based or Statistical Discrimination: The Economics of Discrimination Returns to its Roots," Economic Journal, Royal Economic Society, vol. 123(11), pages 417-432, November.
    8. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162, June.
    9. Giovanni Busetta & Maria Gabriella Campolo & Demetrio Panarello, 2020. "The discrimination decomposition index: a new instrument to separate statistical and taste-based discrimination using first- and second-generation immigrants," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 47(12), pages 1577-1597, October.
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    More about this item

    Keywords

    Labor market discrimination; First- and second-generation immigrants; Statistical and taste-based discrimination.;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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