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Workplace discrimination

Discrimination is a complex, multi-factor phenomenon. Evidence shows widespread discrimination on various grounds, including ethnic origin, sexual orientation, gender identity, religion or beliefs, disability, being over 55 years old, or being a woman. It is not only unfair and potentially costly to the individuals who experience it, but also results in large economic costs for society.

Labor market discrimination based on physical attributes, for example, is widespread. Obese people are less likely to be employed and, when employed, are likely to earn lower wages; physically attractive people, on the other hand, earn more than those considered to be less attractive; and looks can even be pivotal in national elections. But, identifying discriminatory practices in the labor market is not an easy task. Anti-discrimination policies and blind recruitment methods can help in the fight to make workplaces more equal, but there is still a long way to go.

articles

  • Sexual harassment in the workplace Updated

    The #MeToo movement brought heightened attention to sexual harassment and a search for new approaches to combat it

    Joni Hersch, July 2024
    Workplace sexual harassment is internationally condemned as sex discrimination and a violation of human rights, and more than 140 countries have enacted legislation prohibiting it. Sexual harassment increases absenteeism and turnover and lowers productivity and job satisfaction. Yet, it remains pervasive and underreported, as the #MeToo movement starkly revealed in October 2017. Standard workplace policies such as training and a complaints process have proven inadequate. Initiatives such as bans on confidential settlements and measures that support market incentives for deterrence may offer the most promise.
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  • Trans people, well-being, and labor market outcomes Updated

    Transitioning across gender is related to greater life and job satisfaction but also affects acceptance in one’s society

    Nick Drydakis, January 2024
    Acceptance of one’s gender identity and congruence between one’s gender identity and outward appearance are associated with less adverse mental health symptoms, and greater life and job satisfaction. However, trans people are subject to human rights violations, hate crimes, and experience higher unemployment and poverty than the general population. Trans people often feel that they are citizens who are not allowed to be themselves and practice their authentic identity. Many biased treatments of trans people could be attenuated if legal protections and inclusive workplace practices were in place.
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  • Eliminating discrimination in hiring isn’t enough

    Firms interested in workplace diversity should consider the post-hiring stage and why some minority employees choose to leave

    Mackenzie Alston, May 2023
    While many firms have recognized the importance of recruiting and hiring diverse job applicants, they should also pay attention to the challenges newly hired diverse candidates may face after entering the company. It is possible that they are being assessed by unequal or unequitable standards compared to their colleagues, and they may not have sufficient access to opportunities and resources that would benefit them. These disparities could affect the career trajectory, performance, satisfaction, and retention of minority employees. Potential solutions include randomizing task assignments and creating inclusive networking and support opportunities.
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  • Does it pay to be beautiful? Updated

    Physically attractive people can earn more, particularly in customer-facing jobs, and the rewards for men are higher than for women

    Eva SierminskaKaran Singhal, March 2023
    It is a well-established view amongst economists that good-looking people have a better chance of employment and can earn more than those who are less physically attractive. A “beauty premium” is particularly apparent in jobs where there is a productivity gain associated with good looks, though this varies for women and men, and varies across countries. People sort into occupations according to the relative returns to their physical and other characteristics; good-looking people take jobs where physical appearance is deemed important while less-attractive people steer away from them, or they are required to be more productive for the same wage.
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  • Disability and labor market outcomes Updated

    Disability is associated with labor market disadvantage; evidence points to this being a causal relationship

    Melanie Jones, March 2021
    In Europe, about one in eight people of working age report having a disability; that is, a long-term limiting health condition. Despite the introduction of a range of legislative and policy initiatives designed to eliminate discrimination and facilitate retention of and entry into work, disability is associated with substantial and enduring labor market disadvantage in many countries. Identifying the reasons for this is complex, but critical to determine effective policy solutions that reduce the extent, and social and economic costs, of disability-related disadvantage.
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  • Correspondence testing studies Updated

    What is there to learn about discrimination in hiring?

    Dan-Olof Rooth, January 2021
    Anti-discrimination policies play an important role in public discussions. However, identifying discriminatory practices in the labor market is not an easy task. Correspondence testing provides a credible way to reveal discrimination in hiring and provide hard facts for policies, and it has provided evidence of discrimination in hiring across almost all continents except Africa. The method involves sending matched pairs of identical job applications to employers posting jobs—the only difference being a characteristic that signals membership to a group.
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