%0 Report
        %A Lippens, Louis
%A Baert, Stijn
%A Derous, Eva
        %T Loss Aversion in Taste-Based Employee Discrimination: Evidence from a Choice Experiment
        %D 2021
        %8 2021 Jun
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 14438
        %U https://www.iza.org/index.php/publications/dp14438
        %X Using a choice experiment, we test whether taste-based employee discrimination against ethnic minorities is susceptible to loss aversion. In line with empirical evidence from previous research, our results indicate that introducing a hypothetical wage penalty for discriminatory choice behaviour lowers discrimination and that higher penalties have a greater effect. Most notably, we find that the propensity to discriminate is significantly lower when this penalty is loss-framed rather than gain-framed. From a policy perspective, it could therefore be more effective to financially penalise taste-based discriminators than to incentivise them not to discriminate.
        %K ethnicity
%K loss aversion
%K employee discrimination
%K taste-based discrimination