Discrimination in hiring against immigrants and ethnic minorities: the effect of unionization

Abstract

There has been a long debate concerning whether unions are exclusive or inclusive with respect to immigrants and ethnic minorities. In the exclusive view of unions, unionization is expected to increase the likelihood of employers asking questions that discriminate against immigrants and ethnic minorities and decrease the likelihood of employers asking Equal Employment Opportunity (EEO) questions related to immigrant or ethnic minority status. The contrary is expected for the inclusive view. Our analysis, using New Zealand data for job applications, provides some support for the inclusive view of unions, as the higher the unionization rate, the more likely EEO information is sought, but no relationship is found between unionization rate and discriminatory questioning. This suggests that unions are probably helpful in promoting diversity but not yet in combating discrimination against immigrants and ethnic minorities in hiring.