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Profit vs morality: how unfair is labor market discrimination? Results from a survey experiment

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  • Élisabeth Tovar
  • Matthieu Bunel
Abstract
Using an original survey-experimental protocol, we study the normative acceptability of the trade-off between immoral profit (discrimination) and costly morality (non-discrimination). We test the causal influence of three factors: i) the origin of discrimination, ii) the steepness of the morality/profit trade-off and iii) anti-discriminatory moral injunctions. Contrasting with past experimental and attitudinal studies, we find that a significant minority of respondents believe that labor market discrimination is acceptable when morality results in profit loss. We also find that the three tested factors have significant effects on normative opinions. Respondents are more likely to choose profit over morality when discrimination is taste-based than when it is caused by imperfect information. Discrimination’s acceptability rises with the cost of non discrimination. Anti-discriminatory moral injunctions sharply reduces the acceptability of profitable discrimination.

Suggested Citation

  • Élisabeth Tovar & Matthieu Bunel, 2019. "Profit vs morality: how unfair is labor market discrimination? Results from a survey experiment," EconomiX Working Papers 2019-25, University of Paris Nanterre, EconomiX.
    • Handle: RePEc:drm:wpaper:2019-25
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    More about this item

    Keywords

    discrimination; moral suasion; profit/morality trade-off; vignette survey experiment;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J7 - Labor and Demographic Economics - - Labor Discrimination
    • J78 - Labor and Demographic Economics - - Labor Discrimination - - - Public Policy (including comparable worth)
    • C9 - Mathematical and Quantitative Methods - - Design of Experiments

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