August 2017

IZA DP No. 10981: Measuring Labour Differences between Natives, Non-Natives, and Natives with an Ethnic-Minority Background

forthcoming in: Economics Letters, 2017

Through a field study we measure differences in employment outcomes between natives, non-natives, and natives with an ethnic-minority background. It is suggested that the joint effect of productivity uncertainties and distastes against ethnic-minority groups should be higher for non-natives than for natives with an ethnic-minority background. However, it is revealed that both non-natives and natives with an ethnic-minority background face comparable occupational access constraints and are sorted into similarly lower paid vacancies. An ethnic name regardless of one's nationality is enough to generate unequal treatments.