Endophilia or Exophobia: Beyond Discrimination

39 Pages Posted: 11 May 2013  

Nicolas Salamanca

University of Melbourne; IZA; ARC Centre of Excellence for Children and Families over the Life Course

Daniel S. Hamermesh

University of Texas at Austin - Department of Economics; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

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Abstract

The immense literature on discrimination treats outcomes as relative: One group suffers compared to another. But does a difference arise because agents discriminate against others – are exophobic – or because they favor their own kind – are endophilic? This difference matters, as the relative importance of the types of discrimination and their inter-relation affect market outcomes. Using a field experiment in which graders at one university were randomly assigned students' exams that did or did not contain the students' names, on average we find favoritism but no discrimination by nationality, and neither favoritism nor discrimination by gender, findings that are robust to a wide variety of potential concerns. We observe heterogeneity in both discrimination and favoritism by nationality and by gender in the distributions of graders' preferences. We show that a changing correlation between endophilia and exophobia can generate perverse predictions for observed market discrimination.

Keywords: favoritism, discrimination, field experiment, wage differentials, economics of education

JEL Classification: J71, I24, B40

Suggested Citation

Salamanca, Nicolas and Hamermesh, Daniel S., Endophilia or Exophobia: Beyond Discrimination. IZA Discussion Paper No. 7380. Available at SSRN: https://ssrn.com/abstract=2263656

Nicolas Salamanca

University of Melbourne ( email )

185 Pelham Street, Carlton, Victoria 3053
Melbourne, Victoria 3010
Australia

IZA ( email )

P.O. Box 7240
Bonn, D-53072
Germany

ARC Centre of Excellence for Children and Families over the Life Course ( email )

Daniel S. Hamermesh

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

University of Texas at Austin - Department of Economics ( email )

Austin, TX 78712
United States
512-475-8526 (Phone)
512-471-3510 (Fax)

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