Loss aversion in taste-based employee discrimination: Evidence from a choice experiment
Using a choice experiment, we test whether taste-based employee discrimination against ethnic minorities is susceptible to loss aversion. In line with empirical evidence from previous research, our results indicate that introducing a hypothetical wage penalty for discriminatory choice behaviour lowe...
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Veröffentlicht in: | Economics letters 2021-11, Vol.208, p.110081, Article 110081 |
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creator | Lippens, Louis Baert, Stijn Derous, Eva |
description | Using a choice experiment, we test whether taste-based employee discrimination against ethnic minorities is susceptible to loss aversion. In line with empirical evidence from previous research, our results indicate that introducing a hypothetical wage penalty for discriminatory choice behaviour lowers discrimination and that higher penalties have a greater effect. Most notably, we find that the propensity to discriminate is significantly lower when this penalty is loss-framed rather than gain-framed. From a policy perspective, it could therefore be more effective to financially penalise taste-based discriminators than to incentivise them not to discriminate.
•Participant preferences reveal ethnic, taste-based employee discrimination.•Preferences reverse when a wage penalty for discriminatory behaviour is introduced.•The propensity to discriminate is lower when the penalty is loss- vs. gain-framed.•Penalising said discrimination is more effective than rewarding non-discrimination. |
doi_str_mv | 10.1016/j.econlet.2021.110081 |
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•Participant preferences reveal ethnic, taste-based employee discrimination.•Preferences reverse when a wage penalty for discriminatory behaviour is introduced.•The propensity to discriminate is lower when the penalty is loss- vs. gain-framed.•Penalising said discrimination is more effective than rewarding non-discrimination.</description><identifier>ISSN: 0165-1765</identifier><identifier>EISSN: 1873-7374</identifier><identifier>DOI: 10.1016/j.econlet.2021.110081</identifier><language>eng</language><publisher>Amsterdam: Elsevier B.V</publisher><subject>Discrimination ; Employee discrimination ; Employment discrimination ; Ethnic groups ; Ethnicity ; Loss aversion ; Minority & ethnic violence ; Minority groups ; Penalties ; Risk aversion ; Taste ; Taste-based discrimination</subject><ispartof>Economics letters, 2021-11, Vol.208, p.110081, Article 110081</ispartof><rights>2021 Elsevier B.V.</rights><rights>Copyright Elsevier Science Ltd. Nov 2021</rights><lds50>peer_reviewed</lds50><oa>free_for_read</oa><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c449t-903ad370c2177b2fb76bdfc6dcdbc87a60fd5e630720a0d36b9447a4e936bb503</citedby><cites>FETCH-LOGICAL-c449t-903ad370c2177b2fb76bdfc6dcdbc87a60fd5e630720a0d36b9447a4e936bb503</cites><orcidid>0000-0001-7840-2753 ; 0000-0001-7874-5836 ; 0000-0002-1660-5165</orcidid></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktohtml>$$Uhttps://dx.doi.org/10.1016/j.econlet.2021.110081$$EHTML$$P50$$Gelsevier$$H</linktohtml><link.rule.ids>314,780,784,3550,27924,27925,45995</link.rule.ids></links><search><creatorcontrib>Lippens, Louis</creatorcontrib><creatorcontrib>Baert, Stijn</creatorcontrib><creatorcontrib>Derous, Eva</creatorcontrib><title>Loss aversion in taste-based employee discrimination: Evidence from a choice experiment</title><title>Economics letters</title><description>Using a choice experiment, we test whether taste-based employee discrimination against ethnic minorities is susceptible to loss aversion. In line with empirical evidence from previous research, our results indicate that introducing a hypothetical wage penalty for discriminatory choice behaviour lowers discrimination and that higher penalties have a greater effect. Most notably, we find that the propensity to discriminate is significantly lower when this penalty is loss-framed rather than gain-framed. From a policy perspective, it could therefore be more effective to financially penalise taste-based discriminators than to incentivise them not to discriminate.
•Participant preferences reveal ethnic, taste-based employee discrimination.•Preferences reverse when a wage penalty for discriminatory behaviour is introduced.•The propensity to discriminate is lower when the penalty is loss- vs. gain-framed.•Penalising said discrimination is more effective than rewarding non-discrimination.</description><subject>Discrimination</subject><subject>Employee discrimination</subject><subject>Employment discrimination</subject><subject>Ethnic groups</subject><subject>Ethnicity</subject><subject>Loss aversion</subject><subject>Minority & ethnic violence</subject><subject>Minority groups</subject><subject>Penalties</subject><subject>Risk aversion</subject><subject>Taste</subject><subject>Taste-based discrimination</subject><issn>0165-1765</issn><issn>1873-7374</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2021</creationdate><recordtype>article</recordtype><recordid>eNqFkE1LAzEQhoMoWKs_QQh43nWyH8muF5FSP6DgRfEYssksZmk3NUmL_fembO-eZgaed2bel5BbBjkDxu-HHLUb1xjzAgqWMwbQsDMyY40oM1GK6pzMEldnTPD6klyFMACwohX1jHytXAhU7dEH60ZqRxpViJh1KqChuNmu3QGRGhu0txs7qpiwB7rcW4OjRtp7t6GK6m9n04S_W0wYjvGaXPRqHfDmVOfk83n5sXjNVu8vb4unVaarqo1ZC6UypQBdMCG6ou8E70yvudGm041QHHpTIy9BFKDAlLxrq0qoCtvUdjWUc3I37d1697PDEOXgdn5MJ2XBgbO2EW2RqHqitE92PfZym95U_iAZyGOGcpCnDOUxQzllmHSPkw6Thb1FL4O2R9_GetRRGmf_2fAHQrx9vw</recordid><startdate>20211101</startdate><enddate>20211101</enddate><creator>Lippens, Louis</creator><creator>Baert, Stijn</creator><creator>Derous, Eva</creator><general>Elsevier B.V</general><general>Elsevier Science Ltd</general><scope>AAYXX</scope><scope>CITATION</scope><scope>8BJ</scope><scope>FQK</scope><scope>JBE</scope><orcidid>https://orcid.org/0000-0001-7840-2753</orcidid><orcidid>https://orcid.org/0000-0001-7874-5836</orcidid><orcidid>https://orcid.org/0000-0002-1660-5165</orcidid></search><sort><creationdate>20211101</creationdate><title>Loss aversion in taste-based employee discrimination: Evidence from a choice experiment</title><author>Lippens, Louis ; Baert, Stijn ; Derous, Eva</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c449t-903ad370c2177b2fb76bdfc6dcdbc87a60fd5e630720a0d36b9447a4e936bb503</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2021</creationdate><topic>Discrimination</topic><topic>Employee discrimination</topic><topic>Employment discrimination</topic><topic>Ethnic groups</topic><topic>Ethnicity</topic><topic>Loss aversion</topic><topic>Minority & ethnic violence</topic><topic>Minority groups</topic><topic>Penalties</topic><topic>Risk aversion</topic><topic>Taste</topic><topic>Taste-based discrimination</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Lippens, Louis</creatorcontrib><creatorcontrib>Baert, Stijn</creatorcontrib><creatorcontrib>Derous, Eva</creatorcontrib><collection>CrossRef</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>International Bibliography of the Social Sciences</collection><collection>International Bibliography of the Social Sciences</collection><jtitle>Economics letters</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Lippens, Louis</au><au>Baert, Stijn</au><au>Derous, Eva</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Loss aversion in taste-based employee discrimination: Evidence from a choice experiment</atitle><jtitle>Economics letters</jtitle><date>2021-11-01</date><risdate>2021</risdate><volume>208</volume><spage>110081</spage><pages>110081-</pages><artnum>110081</artnum><issn>0165-1765</issn><eissn>1873-7374</eissn><abstract>Using a choice experiment, we test whether taste-based employee discrimination against ethnic minorities is susceptible to loss aversion. In line with empirical evidence from previous research, our results indicate that introducing a hypothetical wage penalty for discriminatory choice behaviour lowers discrimination and that higher penalties have a greater effect. Most notably, we find that the propensity to discriminate is significantly lower when this penalty is loss-framed rather than gain-framed. From a policy perspective, it could therefore be more effective to financially penalise taste-based discriminators than to incentivise them not to discriminate.
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subjects | Discrimination Employee discrimination Employment discrimination Ethnic groups Ethnicity Loss aversion Minority & ethnic violence Minority groups Penalties Risk aversion Taste Taste-based discrimination |
title | Loss aversion in taste-based employee discrimination: Evidence from a choice experiment |
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