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

Louis Lippens, Stijn Baert, Eva Derous

Onderzoeksoutput: Articlepeer review

2 Citaten (Scopus)
5 Downloads (Pure)

Samenvatting

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.

Originele taal-2English
Artikelnummer110081
TijdschriftEconomics Letters
Volume208
DOI's
StatusPublished - nov 2021

Bibliografische nota

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

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