Loss aversion in taste-based employee discrimination: Evidence from a choice experiment

Louis Lippens, Stijn Baert, Eva Derous

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)
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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.

Original languageEnglish
Article number110081
JournalEconomics Letters
Publication statusPublished - Nov 2021

Bibliographical note

Funding Information:
The study was conducted in the context of the EdisTools project. EdisTools is funded by Research Foundation – Flanders (Strategic Basic Research, S004119N ).

Publisher Copyright:
© 2021 Elsevier B.V.

Copyright 2021 Elsevier B.V., All rights reserved.


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