Ethnic Scarring Effect of Unemployment. Results from Two Randomized Field-experiments in Norway

• In Event: 382 - Regular Session. Jobs, Occupations, and Professions

Abstract

We have conducted two randomized field experiments to test ethnic discrimination in the the initial stage of the hiring process in the labor market. Sending two fictitious job applications, one with a typical Pakistani name and one with a typical Norwegian name, we measure call-backs from employers to see if second generation immigrants face discrimination. In both correspondence tests the fictive candidates are given similar level of human capital in terms of education and work experience. Thus, the only noticeably difference is their name, signaling either minority or majority group belonging. In the second test we added one and a half year of unemployment to all applicants’ résumés. Thus, by comparing the two correspondence tests, we may investigate the scarring effect of unemployment, and also if there are ethnic scarring differences of an unemployment period.
Based on previous research we have two main hypotheses. First, given the scarring effects of unemployment we expect to see lower call-backs from employers in the second field experiment. Second, we expect to find higher discrimination against minority applicants with a period of unemployment in their résumés. Results indicate that there a significant decrease in call-back in the second field experiment, both for men and women. Our findings also show that discrimination seems to be stronger when there is a period of unemployment in the applicants’ résumés. However, due to a rather low number of observations, we cannot conclude that this increase in discrimination is statistically significant at conventional levels.

Authors

• Gunn Elisabeth Birkelund, University of Oslo

• Kristian Heggebø, University College of Oslo and Akserhus

• Jon Rogstad, University of Oslo