Labor Market Effects of Urban Riots: An Experimental Assessment

28 Pages Posted: 6 Dec 2017

See all articles by Emmanuel Duguet

Emmanuel Duguet

ERUDITE

David M. Gray

University of Ottawa - Department of Economics

Yannick L'Horty

Université Paris Est

Du Parquet Loïc

Université du Maine - Groupe d' Analyse des Itineraires et Niveaux Salariaux (GAINS)

Pascale Petit

EUREQua

Date Written: August 2017

Abstract

We propose to measure the effects of urban riots on the labour market prospects of workers residing in affected areas through the channel of labour market discrimination based on locality. We investigate the case of the French riots of 2007, which were very geographically concentrated. The town of Villiers-le-Bel is selected as the treatment unit because it received a uniquely high degree of unfavourable exposure in the media. Two other towns serve control groups: i) Sarcelles, which is contiguous to Villiers-le-Bel, has a similar socio-economic-demographic profile, and did experience some rioting activity, and ii) Enghien-les-Bains, which is considered to be economically advantaged and did not experience rioting activity. Using the technique of correspondence testing, we are able to discern disparities in call-back rates for fictitious candidates who respond to actual job postings over four dimensions: gender, ethnic origin, locality of residence (advantaged vs. disadvantaged), and the degree of media exposure during the riots. We implement an empirical approach to measure discrimination across several dimensions that integrates a set of relevant parameters into one unified system of equations. We decomposed the probability of receiving a callback for any candidate of given characteristics as a function of several parameters. We find statistically significant negative effects of a pure media exposure effect. All other factors held constant, people residing in the area which received negative publicity were 3.2 percentage points less likely to receive a callback. The group of workers who tend to be the most associated with the riots, i.e. men of North African origin (at least in terms of perceptions), are the least affected by potential discrimination by region of residence, while women of French origin are the most affected.

Keywords: Labour Market Discrimination, Call-Back Rates, Discrimination, Urban Riots

JEL Classification: C93, J71, R23

Suggested Citation

Duguet, Emmanuel and Gray, David M. and L'Horty, Yannick and Loïc, Du Parquet and Petit, Pascale, Labor Market Effects of Urban Riots: An Experimental Assessment (August 2017). Available at SSRN: https://ssrn.com/abstract=3083404 or http://dx.doi.org/10.2139/ssrn.3083404

Emmanuel Duguet (Contact Author)

ERUDITE ( email )

Mail des Mèches
61 avenue du Général de Gaulle
Créteil Cedex, 94010
France

David M. Gray

University of Ottawa - Department of Economics ( email )

200 Wilbrod Street
P.O. Box 450, Station A
Ottawa, Ontario K1N 6N5
Canada

Yannick L'Horty

Université Paris Est ( email )

Batiment Bois de l'Etang
5 rue Galilee
Champs sur Marne, 77420
France

Du Parquet Loïc

Université du Maine - Groupe d' Analyse des Itineraires et Niveaux Salariaux (GAINS) ( email )

72085 Le Mans Cedex 9
France

Pascale Petit

EUREQua ( email )

106-112 Boulevard de l'Hopital
Paris Cedex 13, 75647
France

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