TY  - RPRT
        AU  - Lippens, Louis
AU  - Baert, Stijn
AU  - Derous, Eva
        TI  - Loss Aversion in Taste-Based Employee Discrimination: Evidence from a Choice Experiment
        PY  - 2021/Jun/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 14438
        UR  - https://www.iza.org/index.php/publications/dp14438
        AB  - 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.
        KW  - ethnicity
KW  - loss aversion
KW  - employee discrimination
KW  - taste-based discrimination
        ER  -