Discrimination in a Low-Wage Labor Market: A Field Experiment

Discrimination in a Low-Wage Labor Market: A Field Experiment

2009 October 1 | Devah Pager, Bruce Western, and Bart Bonikowski
This study examines racial discrimination in the low-wage labor market of New York City through a field experiment. White, black, and Latino applicants, matched on demographic and interpersonal characteristics, submitted identical résumés and applied for entry-level jobs. Results show that black applicants were half as likely as equally qualified white applicants to receive a callback or job offer. Black and Latino applicants with clean backgrounds fared no better than white applicants recently released from prison. These findings suggest that racial bias significantly affects employment opportunities for low-wage workers. Despite legal bans on discrimination and the liberalization of racial attitudes since the 1960s, racial differences in employment remain among the most enduring forms of economic inequality. Racial inequality in total joblessness increased among young men during this period. Research indicates that racial discrimination persists, with employers often reluctant to hire young minority men due to perceptions of unreliability, dishonesty, or lack of social or cognitive skills. However, the extent to which self-reported attitudes influence actual hiring decisions remains uncertain. The study also explores the role of job characteristics in shaping employment outcomes. Jobs involving customer service or contact with clients heighten the salience of race due to employers' concerns about the dress and demeanor of young black men. Jobs at the "back of the house" or those emphasizing manual skills are less likely to activate such concerns. Discrimination may occur at the job level, with black applicants excluded from some job types and channeled into others. The study uses a field experiment to directly observe employer decision-making, allowing for a more accurate assessment of racial discrimination. By comparing the outcomes of black, white, and Latino applicants, the study finds that racial preferences are not fixed or concentrated among a specific subset of employers. Instead, discrimination is influenced by a complex range of factors, including the availability of and attention to person-specific information. The study also highlights the role of soft skills, ethnic heterogeneity, and job seekers with criminal records in shaping employment outcomes. The persistence or increasing incidence of discrimination in contemporary low-wage labor markets is attributed to preconceived notions about the characteristics or desirability of black men relative to other applicant types. The study's findings suggest that racial discrimination continues to affect labor market outcomes for minority workers. The results indicate that employers' racial preferences are not static but vary in intensity and consequence depending on other characteristics of the applicant, the employer, and the interaction between the two. The study also emphasizes the importance of qualitative data in understanding the processes of discrimination, revealing the range of employer responses that characterize discrimination in contemporary low-wage labor markets.This study examines racial discrimination in the low-wage labor market of New York City through a field experiment. White, black, and Latino applicants, matched on demographic and interpersonal characteristics, submitted identical résumés and applied for entry-level jobs. Results show that black applicants were half as likely as equally qualified white applicants to receive a callback or job offer. Black and Latino applicants with clean backgrounds fared no better than white applicants recently released from prison. These findings suggest that racial bias significantly affects employment opportunities for low-wage workers. Despite legal bans on discrimination and the liberalization of racial attitudes since the 1960s, racial differences in employment remain among the most enduring forms of economic inequality. Racial inequality in total joblessness increased among young men during this period. Research indicates that racial discrimination persists, with employers often reluctant to hire young minority men due to perceptions of unreliability, dishonesty, or lack of social or cognitive skills. However, the extent to which self-reported attitudes influence actual hiring decisions remains uncertain. The study also explores the role of job characteristics in shaping employment outcomes. Jobs involving customer service or contact with clients heighten the salience of race due to employers' concerns about the dress and demeanor of young black men. Jobs at the "back of the house" or those emphasizing manual skills are less likely to activate such concerns. Discrimination may occur at the job level, with black applicants excluded from some job types and channeled into others. The study uses a field experiment to directly observe employer decision-making, allowing for a more accurate assessment of racial discrimination. By comparing the outcomes of black, white, and Latino applicants, the study finds that racial preferences are not fixed or concentrated among a specific subset of employers. Instead, discrimination is influenced by a complex range of factors, including the availability of and attention to person-specific information. The study also highlights the role of soft skills, ethnic heterogeneity, and job seekers with criminal records in shaping employment outcomes. The persistence or increasing incidence of discrimination in contemporary low-wage labor markets is attributed to preconceived notions about the characteristics or desirability of black men relative to other applicant types. The study's findings suggest that racial discrimination continues to affect labor market outcomes for minority workers. The results indicate that employers' racial preferences are not static but vary in intensity and consequence depending on other characteristics of the applicant, the employer, and the interaction between the two. The study also emphasizes the importance of qualitative data in understanding the processes of discrimination, revealing the range of employer responses that characterize discrimination in contemporary low-wage labor markets.
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Understanding Discrimination in a Low-Wage Labor Market