Cyclical behavior of hiring discrimination: evidence from repeated experiments in France.

Abstract

Our objective is to investigate if hiring discrimination in France has a cyclical nature using an innovative set of repeated correspondence tests. The methodology covers one type of job only, that of administrative manager, in both the private and public sectors, and two discrimination criteria, ethnic origin and place of residence. The empirical analysis is based on five waves of tests starting in 2015, covering the periods before, during, and after the first lockdown, with 4749 applications sent for 1583 job openings in total. Our results indicate that hiring discrimination based on the dual criteria of origin and place of residence has decreased in France since the mid-2010s, within the context of an improved labor market, but that it increased sharply during the Covid health crisis, in recessionary conditions, suggesting that it generally follows a counter-cyclical behavior. Overall, the temporal patterns of discrimination, as measured by callback rates, mirror those of the unemployment rate.