Audit study

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A type of study used in economics, sociology, political science, and psychology, an audit study is one in which trained employees of the researcher ("auditors") are matched on all characteristics except the one being tested for discrimination. [1] These auditors then apply for a service, be it a job, financial advice regarding their stock portfolio, [2] housing, [3] or a credit card, to test for discrimination. [4]

Contents

Applications

Audit studies have been conducted to test the existence of discrimination in numerous occupations and services and in regards to multiple characteristics. For example, studies have been conducted to measure discrimination against racial minorities by real estate agents, [5] as well as gender discrimination against women applying for restaurant jobs. [6] Most employment-related audit studies have focused on overqualified college students applying for low-paying jobs during the summer. [7] They have also been used to measure racial and gender discrimination in academia, [8] racial discrimination in the low [9] and high [10] ends of the labor market, discrimination in social integration, [11] and racial/ethnic discrimination in roommate selection. [12]

Criticism

Audit studies have been criticized because the auditors may look different to employers, and this may result in the appearance of discrimination when employers were really just making decisions based on appearance. [13] The other limitations of these studies, according to their critics, include that they are unable to audit jobs found through interactions with other people directly, only those found through newspapers. [7] Additionally, others have noted the lack of standardization of signals (primarily names) to indicate race through correspondence (e.g., resumes and emails). [14] [15]

Related Research Articles

Racial discrimination is any discrimination against any individual on the basis of their skin color, race or ethnic origin. Individuals can discriminate by refusing to do business with, socialize with, or share resources with people of a certain group. Governments can discriminate in a de facto fashion or explicitly in law, for example through policies of racial segregation, disparate enforcement of laws, or disproportionate allocation of resources. Some jurisdictions have anti-discrimination laws which prohibit the government or individuals from discriminating based on race in various circumstances. Some institutions and laws use affirmative action to attempt to overcome or compensate for the effects of racial discrimination. In some cases, this is simply enhanced recruitment of members of underrepresented groups; in other cases, there are firm racial quotas. Opponents of strong remedies like quotas characterize them as reverse discrimination, where members of a dominant or majority group are discriminated against.

Discrimination based on skin color, also known as colorism, or shadeism, is a form of prejudice and discrimination in which people who share similar ethnic traits and people who are perceived as belonging to a darker skinned race are treated differently based on the social implications that come with the cultural meanings that are attached to their darker skin color.

Masahisa Fujita is a Japanese economist who has studied regional science and Urban economics and International Trade, Spatial Economy. He is a professor at Konan University and an adjunct professor at Institute of Economic Research, Kyoto University.

In the United States, the relationship between race and crime has been a topic of public controversy and scholarly debate for more than a century. Crime rates vary significantly between racial groups. Academic research indicates that the over-representation of some racial minorities in the criminal justice system can in part be explained by socioeconomic factors, such as poverty, exposure to poor neighborhoods, poor access to public and early education, and exposure to harmful chemicals and pollution. Racial housing segregation has also been linked to racial disparities in crime rates, as Blacks have historically and to the present been prevented from moving into prosperous low-crime areas through actions of the government and private actors. Various explanations within criminology have been proposed for racial disparities in crime rates, including conflict theory, strain theory, general strain theory, social disorganization theory, macrostructural opportunity theory, social control theory, and subcultural theory.

Racism in the United States comprises negative attitudes and views on race or ethnicity which are related to each other, are held by various people and groups in the United States, and have been reflected in discriminatory laws, practices and actions against racial or ethnic groups at various times in the history of the United States. Throughout American history, legally or socially sanctioned privileges and rights have generally been granted to white Americans, but at various times, these same privileges and rights have been denied to members of various ethnic or minority groups. European Americans, and affluent white Anglo-Saxon Protestants in particular, are said to have enjoyed advantages in matters of education, immigration, voting rights, citizenship, land acquisition, and criminal procedure.

Employment discrimination is a form of illegal discrimination in the workplace based on legally protected characteristics. In the U.S., federal anti-discrimination law prohibits discrimination by employers against employees based on age, race, gender, sex, religion, national origin, and physical or mental disability. State and local laws often protect additional characteristics such as marital status, veteran status and caregiver/familial status. Earnings differentials or occupational differentiation—where differences in pay come from differences in qualifications or responsibilities—should not be confused with employment discrimination. Discrimination can be intended and involve disparate treatment of a group or be unintended, yet create disparate impact for a group.

<span class="mw-page-title-main">Gender pay gap in the United States</span> Overview of the gender pay gap in the United States of America

The gender pay gap in the United States is a measure between the earnings of male and females in the workforce. When calculating the pay gap, non-adjusted versus adjusted pay gap is utilized. The adjusted pay gap takes into consideration the differences in hours worked, occupations chosen, education and job experience, whereas the non-adjusted pay gap is the overall difference of gross hourly earnings of males and females in the United States. The non-adjusted average female annual salary is around 80% of the average male salary, compared to 95% for the adjusted average salary.

<span class="mw-page-title-main">Immigration</span> Movement of people into another country or region to which they are not native

Immigration is the international movement of people to a destination country of which they are not natives or where they do not possess citizenship in order to settle as permanent residents or naturalized citizens. Commuters, tourists, and other short-term stays in a destination country do not fall under the definition of immigration or migration; seasonal labour immigration is sometimes included, however.

Sexual capital or erotic capital is the social power an individual or group accrues as a result of their sexual attractiveness and social charm. It enables social mobility independent of class origin because sexual capital is convertible, and may be useful in acquiring other forms of capital, including social capital and economic capital.

Occupational segregation is the distribution of workers across and within occupations, based upon demographic characteristics, most often gender. Other types of occupational segregation include racial and ethnicity segregation, and sexual orientation segregation. These demographic characteristics often intersect. While a job refers to an actual position in a firm or industry, an occupation represents a group of similar jobs that require similar skill requirements and duties. Many occupations are segregated within themselves because of the differing jobs, but this is difficult to detect in terms of occupational data. Occupational segregation compares different groups and their occupations within the context of the entire labor force. The value or prestige of the jobs are typically not factored into the measurements.

<span class="mw-page-title-main">Residential segregation in the United States</span>

Residential segregation in the United States is the physical separation of two or more groups into different neighborhoods—a form of segregation that "sorts population groups into various neighborhood contexts and shapes the living environment at the neighborhood level". While it has traditionally been associated with racial segregation, it generally refers to the separation of populations based on some criteria.

Housing discrimination refers to patterns of discrimination that affect a person's ability to rent or buy housing. This disparate treatment of a person on the housing market can be based on group characteristics or on the place where a person lives.

Michael Parker Banton CMG, FRAI was a British social scientist, known primarily for his publications on racial and ethnic relations. He was also the first editor of Sociology (1966-1969).

Race is one of the correlates of crime receiving attention in academic studies, government surveys, media coverage, and public concern. Research has found that social status, poverty, and childhood exposure to violent behavior are causes of the racial disparities in crime.

Housing discrimination in the United States refers to the historical and current barriers, policies, and biases that prevent equitable access to housing. Housing discrimination became more pronounced after the abolition of slavery in 1865, typically as part of Jim Crow laws that enforced racial segregation. The federal government began to take action against these laws in 1917, when the Supreme Court struck down ordinances prohibiting blacks from occupying or owning buildings in majority-white neighborhoods in Buchanan v. Warley. However, the federal government as well as local governments continued to be directly responsible for housing discrimination through redlining and race-restricted covenants until the Civil Rights Act of 1968.

<span class="mw-page-title-main">Sociology of race and ethnic relations</span> Field of study

The sociology of race and ethnic relations is the study of social, political, and economic relations between races and ethnicities at all levels of society. This area encompasses the study of systemic racism, like residential segregation and other complex social processes between different racial and ethnic groups.

In the United States, despite the efforts of equality proponents, income inequality persists among races and ethnicities. Asian Americans have the highest median income, followed by White Americans, Hispanic Americans, African Americans, and Native Americans. A variety of explanations for these differences have been proposed—such as differing access to education, two parent home family structure, high school dropout rates and experience of discrimination and deep-seated and systemic anti-Black racism—and the topic is highly controversial.

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<span class="mw-page-title-main">Gender pay gap</span> Average difference in remuneration amounts between men and women

The gender pay gap or gender wage gap is the average difference between the remuneration for men and women who are working. Women are generally found to be paid less than men. There are two distinct numbers regarding the pay gap: non-adjusted versus adjusted pay gap. The latter typically takes into account differences in hours worked, occupations chosen, education and job experience. In the United States, for example, the non-adjusted average woman's annual salary is 79% of the average man's salary, compared to 95% for the adjusted average salary.

Discrimination based on nationality is discriminating against a person based on their nationality, country of citizenship, or national origin. Although many countries' non-discrimination laws contain exceptions for nationality and immigration status, nationality is related to race and religion, so direct discrimination on the basis of nationality may be indirect discrimination on racial or religious grounds. Discrimination "against any particular nationality" is prohibited by the International Convention on the Elimination of All Forms of Racial Discrimination (CERD).

References

  1. Gaddis, S. Michael, ed. (2018). Audit Studies: Behind the Scenes with Theory, Method, and Nuance. Springer. doi:10.1007/978-3-319-71153-9. ISBN   978-3-319-71152-2.
  2. Mullainathan, Sendhil; Noeth, Markus; Schoar, Antoinette (March 2012). "The Market for Financial Advice: An Audit Study". NBER Working Paper No. 17929. doi: 10.3386/w17929 .
  3. Page, Marianne (1995). "Racial and ethnic discrimination in urban housing markets: Evidence from a recent audit study". Journal of Urban Economics . 38 (2): 183–206. doi:10.1006/juec.1995.1028.
  4. Fix, Michael; Struyk, Raymond J., eds. (1993). Clear and Convincing Evidence: Measurement of Discrimination in America. Urban Institute Press.
  5. Page, Marianne (September 1995). "Racial and Ethnic Discrimination in Urban Housing Markets: Evidence from a Recent Audit Study". Journal of Urban Economics . 38 (2): 183–206. doi:10.1006/juec.1995.1028.
  6. Neumark, D.; Bank, R. J.; Van Nort, K. D. (1 August 1996). "Sex Discrimination in Restaurant Hiring: An Audit Study" (PDF). The Quarterly Journal of Economics . 111 (3): 915–941. doi:10.2307/2946676. JSTOR   2946676. S2CID   150106209.
  7. 1 2 Heckman, James J. (Spring 1998). "Detecting Discrimination". The Journal of Economic Perspectives . 12 (2): 101–116. CiteSeerX   10.1.1.371.4425 . doi:10.1257/jep.12.2.101. JSTOR   2646964.
  8. Milkman, K. L.; Akinola, M.; Chugh, D. (21 May 2012). "Temporal Distance and Discrimination: An Audit Study in Academia". Psychological Science . 23 (7): 710–717. doi:10.1177/0956797611434539. PMID   22614463. S2CID   6706060.
  9. Pager, D. (March 2003). "The Mark of a Criminal Record". American Journal of Sociology . 108 (5): 937–975. doi:10.1086/374403. S2CID   11568703.
  10. Gaddis, S. M. (June 2015). "Discrimination in the Credential Society: An Audit Study of Race and College Selectivity in the Labor Market". Social Forces . 93 (4): 1451–1479. doi:10.1093/sf/sou111.
  11. Gomez-Gonzalez, Carlos; Nesseler, Cornel; Dietl, Helmut (2021). "Mapping discrimination in Europe through a field experiment in amateur sport" (PDF). Humanities and Social Sciences Communications. 8: 1–7. doi: 10.1057/s41599-021-00773-2 .
  12. Gaddis, S. Michael; Ghoshal, Raj (2020). "Searching for a Roommate: A Correspondence Audit Examining Racial/Ethnic and Immigrant Discrimination among Millennials". Socius: Sociological Research for a Dynamic World. 6. doi: 10.1177/2378023120972287 . PMC   8336603 . PMID   34355061. S2CID   213167707.
  13. Neumark, David (2012). "Detecting Discrimination in Audit and Correspondence Studies". Journal of Human Resources . 47 (4): 1128–1157. doi:10.3368/jhr.47.4.1128. hdl: 10419/46132 . S2CID   17645916.
  14. Gaddis, S. Michael (2017). "How Black Are Lakisha and Jamal? Racial Perceptions from Names Used in Correspondence Audit Studies". Sociological Science . 4: 469–489. doi: 10.15195/v4.a19 .
  15. Gaddis, S. Michael (2017). "Racial/Ethnic Perceptions from Hispanic Names: Selecting Names to Test for Discrimination". Socius: Sociological Research for a Dynamic World . 3: 237802311773719. doi: 10.1177/2378023117737193 .