Hiring a Homosexual, Taking a Risk? A Lab Experiment on Employment Discrimination and Risk Aversion

Arbeitspapier

We investigate risk aversion as a driver of labour market discrimination against homosexual men. We show that more hiring discrimination by more risk-averse employers is consistent with taste-based and statistical discrimination. To test this hypothesis we conduct a scenario experiment in which experimental employers make a hiring decision concerning a heterosexual or homosexual job candidate. In addition, participants are surveyed on their risk aversion and other characteristics that might correlate with this risk aversion. Analysis of the (post-)experimental data confirms our hypothesis. The probability of a beneficial hiring decision for homosexual candidates decreases by 31.7% when employers are a standard deviation more risk-averse.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 9536

Classification and Topics

• Classification: Wirtschaft ; Design of Experiments: Laboratory, Individual ; Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination ; Labor Discrimination
• Subject: hiring discrimination ; statistical discrimination ; sexual orientation ; scenario experiment ; risk aversion

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Baert, Stijn
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/125053
• Last update: 10.03.2025, 11:43 AM CET