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Abstract We provide a correspondence field experiment to assess the labor discrimination against entrepreneurs and ethnic minorities in Russia. Entrepreneurs stay in business despite both lower initial earnings and slower growth of income than in paid employment (Hamilton et al., 2000; Moskowitz and Vissing-Jorgensen, 2002; ˚ Astebro et al., 2004). This puzzling behavior is commonly explained by nonpecuniary taste-based factors like preferences for autonomy or control (see for review Astebro et al., 2014). Though specific preferences, of course, play a role, the entrepreneurs can stay self-employed simply because they can not find a job since prospective employers could prefer candidates with corporate experience. Some studies show discrimination of entrepreneurs at the labor market (Failla et al., 2017). However, these evidence either correlation or inconclusive. Moreover, little is known why employees discriminate the entrepreneurs: is it taste-based discrimination (Becker, 1971) or statistical one (Phelps, 1972; Arrow, 1973)?? We provide correspondence experiment (Bertrand and Mullainathan, 2004) in Russia to fill this gap Specifically, we try to understand (1) if entrepreneurial discrimination exists; (2) if it exists, is it statistical or taste based; (3) if providing a goal for applying can reduce the level of discrimination. In addition, we measure the level of ethnic discrimination. We send 12.000 fictitious resumes in response to 3000 real job advertisement in Russia and measure the rate of call-backs as an indicator of interest in the applicant. To elicit discrimination towards entrepreneurs we send identical CV's, except that we randomly assign if a person was self-employed or worked for a company. To assess if the entrepreneurial discrimination is statistically based, we apply for the occupations with different skill-levels: High or low skill level job according to International Standard Classification of Occupations (2008). We assess racial discrimination randomly assigning the Slavic and ethnic minorities sounding names to the resumes with equal quality e.g. Alexey Lebedev vs. Ansar Juraev.
JEL Code(s) J01, J7, C93
Last Published October 13, 2017 11:47 AM October 16, 2017 10:39 AM
Intervention (Public) We plan to send fictitious resume in response to 2000 real job advertisement in Russia in June - September 2016, and measure the rate of call-back as the indicator of interest in the applicant. We provide the correspondence experiment in Russia. Overall, we send 12.000 fi ctitious resumes in response to 3.000 real job advertisement in Russia and we measure the rate of callbacks and response on e-mails as an indicator of interest in the applicant.
Primary Outcomes (End Points) Call-back rate Response Rate: Call-back and e-mail answers
Primary Outcomes (Explanation) 1. Call-back and e-mail answers 2. Call-back 3. E-mail answers
Randomization Method random.org Random number generation with help of computer program
Randomization Unit Order of CV applications. CV/ Vacancy. We send different types of CV for the same vacancy in random order.
Planned Number of Clusters 2000 vacancies 3000 vacancies
Planned Number of Observations 8000 cv 12 000 CV
Sample size (or number of clusters) by treatment arms 2000 cvs with slavic sounding names and entrepreneurial experience 2000 cvs with non-slavic sounding names and entrepreneurial experience 2000 cvs with slavic sounding names and non-entrepreneurial experience 2000 cvs with non-slavic sounding names and non-entrepreneurial experience Discrimination against Entrepreneurs Part of Experiment 2000 cvs with entrepreneurial experience and motivation section 2000 cvs with entrepreneurial experience and no motivation section 2000 cvs with corporate experience and motivation section 2000 cvs with corporate experience and no motivation section Discrimination against Ethnic Minorities 1000 cvs with slavic sounding names and and with working experience 1000 cvs with slavic sounding names and with no working experience 1000 cvs with non-slavic sounding names and with working experience 1000 cvs with non-slavic sounding names and with no working experience
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