Business Case Studies & Business Publications

A CLASS DIVIDED

Professor Tarun Ja...

Technical Note

A CLASS DIVIDED

Professor Tarun Jain

ISB032 | Published October 7, 2013 | 6 pages Technical Note

Collection: Indian School of Business

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Learning Objectives

Does discrimination on the basis of gender, religion or ethnic origin exist in the job market? Why do employers use these factors in hiring decisions? Is discrimination equally prevalent in different sectors and in the presence of countervailing information? Are reasons for job market discrimination justified? What are possible strategies for combating job market discrimination? This case examines these questions in the context of hiring in the entry level white collar job market in an emerging economy.

The case illustrates methodologies to statistically determine whether discrimination exists in the job market. It offers insight into justifications that employers use for preferring one class of employees over others, and the effect of hiring discrimination on applicants. The case can be used to discuss statistical versus taste-based discrimination and topics such stereotyping. All situations are depicted from a major emerging economy, namely India.