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Customer discrimination and employment outcomes: Theory and evidence from the French labor market

Morgane Laouenan
Alain Trannoy

Abstract

The paper investigates the link between the over-exposure of African immigrants to unemployment in France and their under-representation in jobs in contact with customers. We build a two-sector matching model with ethnic sector-specific preferences, economy-wide employer discrimination, and customer discrimination in jobs in contact with customers. The outcomes of the model allow us to build a test of ethnic discrimination in general and customer discrimination in particular. We run the test on French individual data in a cross-section of local labor markets (Employment Areas). Our results show that there is both ethnic and customer discrimination in the French labor market.
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Dates and versions

hal-03568534 , version 1 (12-02-2022)

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Pierre-Philippe Combes, Bruno Decreuse, Morgane Laouenan, Alain Trannoy. Customer discrimination and employment outcomes: Theory and evidence from the French labor market. 2014. ⟨hal-03568534⟩
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