The price of prejudice
Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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The price of prejudice. / Hedegaard, Morten; Tyran, Jean-Robert Karl.
I: American Economic Journal: Applied Economics, Bind 10, Nr. 1, 01.2018, s. 40-63.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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TY - JOUR
T1 - The price of prejudice
AU - Hedegaard, Morten
AU - Tyran, Jean-Robert Karl
PY - 2018/1
Y1 - 2018/1
N2 - 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 highly responsive to the “price of prejudice”, i.e. to the opportunity cost of choosing a less productive worker on ethnic grounds. Discriminators are on average willing to forego 8 percent of their earnings to avoid a co-worker of the other ethnic type. The evidence suggests that animus rather than statistical discrimination explains observed behavior.
AB - 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 highly responsive to the “price of prejudice”, i.e. to the opportunity cost of choosing a less productive worker on ethnic grounds. Discriminators are on average willing to forego 8 percent of their earnings to avoid a co-worker of the other ethnic type. The evidence suggests that animus rather than statistical discrimination explains observed behavior.
U2 - 10.1257/app.20150241
DO - 10.1257/app.20150241
M3 - Journal article
VL - 10
SP - 40
EP - 63
JO - American Economic Journal: Applied Economics
JF - American Economic Journal: Applied Economics
SN - 1945-7782
IS - 1
ER -
ID: 222751291