The Price of Prejudice

Autor(en)

Morten Hedegaard, Jean-Robert Tyran

Abstrakt

We present a new type of field experiment to investigate ethnic prejudice in the
workplace. Our design allows us to study how potential discriminators respond to
changes in the cost of discrimination. We find that ethnic discrimination is
common but remarkably responsive to the “price of prejudice”, i.e. to the
opportunity cost of choosing a less productive worker on ethnic grounds. In
addition, we find that the standard theory of statistical discrimination fails to
explain observed choices, and that taking ethnic prejudice into account helps to
predict the incidence of discrimination.

Organisation(en)

Institut für Volkswirtschaftslehre, Wiener Zentrum für Experimentelle Wirtschaftsforschung

Externe Organisation(en)

University of Copenhagen

Anzahl der Seiten

54

Publikationsdatum

04-2014

ÖFOS 2012

502002 Arbeitsmarkttheorie

Schlagwörter

Link zum Portal

https://ucrisportal.univie.ac.at/de/publications/99727064-6e58-4b98-b206-cd906207c0e5