2018-02 Ethnical discrimination

Ethnical discrimination in Europe - Field evidence from the finance industry

We are happy to announce that a new paper by Matthias Stefan, Felix Holzmeister, Alexander Müllauer and Michael Kirchler has been published in PLOS ONE.

Abstract: The integration of ethnical minorities has been a hotly discussed topic in the political, societal, and economic debate. Persistent discrimination of ethnical minorities can hinder successful integration. Given that unequal access to investment and financing opportunities can cause social and economic disparities due to inferior economic prospects, we conducted a field experiment on ethnical discrimination in the finance sector with 1,218 banks in seven European countries. We contacted banks via e-mail, either with domestic or Arabic sounding names, asking for contact details only. We find pronounced discrimination in terms of a substantially lower response rate to e-mails from Arabic senders. Remarkably, the observed discrimination effect is robust for loan- and investment-related requests, across rural and urban locations of banks, and across countries.

The paper is open access and can be downloaded via the link below.

  Stefan Matthias, Holzmeister Felix, Müllauer Alexander, Kirchler Michael (2018): Ethnical discrimination in Europe: Field evidence from the finance industry. PLoS ONE 13(1): e0191959. doi: 10.1371/journal.pone.0191959   (open access).

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