TY  - RPRT
        AU  - Kertesi, Gabor
AU  - Köllő, János
AU  - Károlyi, Róbert
AU  - Szabó, Lajos Tamás
        TI  - From Ethnic Prejudice to Employment Discrimination: The Role of Small Firms as Mediators
        PY  - 2025/May/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 17901
        UR  - https://www.iza.org/index.php/publications/dp17901
        AB  - Hungary's sizeable Roma minority is hit by massive prejudice. Using 2011 Census data and supplementary sources, we study how ethnic bias translates to employment discrimination in local labor markets. The male ethnic employment gap, adjusted for a rich battery of controls, was 20-40 percent wider than average if, and only if, the local population strongly supported an openly anti-Roma far-right party and, at the same time, small firms had a substantial share in the local economy. Roma women's (very low) employment is less responsive to prejudice and the small firm share. The results for men, the sole breadwinners in most Roma families, survive robustness checks and confrontation with alternative explanations. Since small firms easily elude the anti-discrimination regulations, the results draw attention to the limits of legal instruments and call for active policy.
        KW  - minorities
KW  - discrimination
KW  - regional labor markets
KW  - small firms
        ER  -