Discrimination towards Youth in Goods and Services Markets: Evidence from Field Experiments in France

Abstract

In this study, we carried out seven distinct and independent rounds of correspondence tests to detect discriminatory behavior in domains and markets in France that have not previously been subjected to much investigation in the literature. The study areas included: purchasing a used car; purchasing an auto insurance policy; applying for a car loan; purchasing supplemental health insurance; enrolling in an adult training program; purchasing an existing small business; and renting vacation accommodations. Access to these items and services are associated with either potential pathways to a middle-class job or hallmarks of a middle-class living standard. We seek to discern evidence of discriminatory behavior according to the criteria of age, gender, ethnic origin, and the reputation of the neighborhood of residence (advantaged or disadvantaged). We discern statistically significant patterns in our observed statistical outcome (callback rates) in all seven markets, which we interpret as possibly indicative of discriminatory behavior; however, the criteria, the magnitudes, and the signs differ from one market to another. One finding is that differential treatment based on ethnicity and the reputation of the neighborhood (i.e., neutral or disadvantaged) might not be as systematic and mutually reinforcing as they are frequently perceived to be in the domains of labor and housing markets.