Giangiacomo Bravo (Università di Torino & Collegio Carlo Alberto)

“Discrimination in labour markets: An experimental analysis”

Abstract:

This study highlights that discrimination can be pervasive on the labor market also in the lack of quality differences between different categories and if employers with unbiased intentions strive for high quality workers. We tested experimentally the hypotheses that (i) high aspiration levels of firms and (ii) more friendship referral hiring are responsible for higher discrimination and labour market segregation while (iii) with the increasing density of information exchange networks among business partners discrimination decreases. We found empirical support for hypotheses (i) and (ii) while our data did not confirm hypothesis (iii).