Elevator pitch
Over the past decades, academics worldwide have conducted experiments with fictitious job applications to measure discrimination in hiring. This discrimination leads to underutilization of labor market potential and higher unemployment rates for individuals from vulnerable groups. Collectively, the insights from the published research suggest that three groups face more discrimination than ethnic minorities: people with disabilities, less physically attractive people, and older people. The discrimination found in Western economies generally persists across countries and is stable over time, although some variation exists.
Key findings
Pros
- Hiring discrimination based on gender appears mainly in occupations dominated by a specific gender.
- Age discrimination is considerably lower in the US than in Europe.
- Compared to other forms of discrimination, the high beauty premium in hiring stands out.
- The level of ethnic discrimination varies by origin and is highest for Middle Eastern and Northern African candidates but lowest for European minorities.
- Research increasingly focuses on identifying the mechanisms that may explain discrimination, but no conclusive view has emerged.
Cons
- The past decades have seen little reduction in hiring discrimination.
- Age discrimination in hiring is substantial and under-researched in many countries.
- People with a disability are discriminated against most, although it is uncertain to what extent the hiring discrimination is productivity-related.
- Candidates open about their sexual orientation receive significantly fewer positive responses to their job applications.
- Ethnic hiring discrimination varies geographically, being highest in European countries such as France and Sweden and lowest in Germany.
Author's main message
The global research findings on hiring discrimination against vulnerable groups are inconsistent with policies (e.g., hiring quotas or subsidies) that focus exclusively on one vulnerable group or another. Broad diversity policies are needed instead. Policymaking should prioritize helping the most disadvantaged minorities, paying particular attention to intersectional hiring discrimination based on multiple personal characteristics. Moreover, policymaking should support research that (i) evaluates under-researched types of discrimination, (ii) provides broader insights into discrimination mechanisms, and (iii) pilot tests the efficacy of policy interventions.
This article first appeared on IZA World of Labor in February 2025. Reproduced with permission
