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Trial Title Discrimination Against the Entrepreneurs and Ethinc Minorities: Field Experiment in Russia. Discrimination Against the Entrepreneurs and Ethnic Minorities: Field Experiment in Russia
Abstract 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. 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 ( e.g. 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.
Last Published October 16, 2017 10:39 AM October 16, 2017 02:44 PM
Experimental Design (Public) Correspondence Experiment To elicit discrimination towards entrepreneurs we send 8.000 CV's in response to 2.000 vacancies. We randomly assign if (1) a person was self-employed or worked for a company and (2) whether motivation section in CV is provided. To assess if the entrepreneurial discrimination is statistically based, we apply for the similar occupations with different skill-levels: High (Skill level 4) or low(skill level 2) skill level job according to International Standard Classi cation of Occupations (2008). Namely, we send resume on the next vacancies in Skill level 4: Finance Managers (1211), Advertising and Public Relations Managers (1222), Information and Communications Technology Services Managers (1330). In skill level 2: Accounting Associate Professionals (3313); Conference and Event Planners (3332); Information and Communications Technology Operations Technicians (3511). To assess racial discrimination we send 4.000 CV's in the response of 1.000 vacancies.We randomly vary the Slavic and ethnic minorities sounding names for the resumes with equal quality e.g. Alexey Lebedev vs. Ansar Juraev. Also, we vary if the person has work experience (on average 1.5 year) or (s)he recently graduated. We choose a broad range of occupations in different industries with the highest demand and that requires or does not face-to-face interaction with clients. Thus, we chose next six occupations for this part of experiment: Advertising and Marketing Professionals (2431, skill level 4), Real Estate Agents and Property Managers (3334, skill level 3), General Office Clerks (4110, skill level 2), Answering Service Operator (4223, skill level 2), Receptionists (general) (4226, skill level 2), Messengers, Package Deliverers and Luggage Porters (9621, skill level 1).
Randomization Method Random number generation with help of computer program Random number generation within computer mailing program.
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