Audit study

In economics, 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. These auditors then apply for a service, be it a job, financial advice regarding their stock portfolio,[1] housing, or a credit card, to test for discrimination.[2]

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,[3] as well as gender discrimination against women applying for restaurant jobs.[4] Most employment-related audit studies have focused on overqualified college students applying for low-paying jobs during the summer.[5] They have also been used to measure racial and gender discrimination in academia.[6]

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.[7] 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.[5]

References

  1. ↑ Mullainathan, Sendhil; Noeth, Markus; Schoar, Antoinette (March 2012). "The Market for Financial Advice: An Audit Study". National Bureau of Economic Research working paper. doi:10.3386/w17929.
  2. ↑ Fix, Michael; Struyk, Raymond J., eds. (1993). Clear and Convincing Evidence: Measurement of Discrimination in America. Urban Institute Press.
  3. ↑ 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.
  4. ↑ Neumark, D.; Bank, R. J.; Van Nort, K. D. (1 August 1996). "Sex Discrimination in Restaurant Hiring: An Audit Study". The Quarterly Journal of Economics 111 (3): 915–941. doi:10.2307/2946676.
  5. 1 2 Heckman, James J. (Spring 1998). "Detecting Discrimination". The Journal of Economic Perspectives 12 (2).
  6. ↑ 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.
  7. ↑ 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.
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