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We investigate whether relative age (i.e. the age gap between classmates) affects life satisfaction and health in adolescence. We analyse data on students between 10 and 17 years of age from the international survey 'Health Behaviour in School-Aged Children' and find robust evidence that a twelve-month increase in relative age (i.e. the hypothetical maximum age gap between classmates) i) increases life satisfaction by 0.168 standard deviations, ii) increases selfrated general health by 0.108 standard deviations, iii) decreases psychosomatic complaints by 0.072 standard deviations, and iv) decreases chances of being overweight by 2.4%. These effects are comparable in size to the effects of students' household socio-economic status. Finally, gaps in life satisfaction are the only ones to reduce with the increase in absolute age, but only in countries where the first tracking of students occurs at 14 years of age or later.

Several studies using observational data suggest that ethnic discrimination increases in downturns of the economy. We investigate whether ethnic discrimination depends on labor market tightness using data from correspondence studies. We utilize three correspondence studies of the Swedish labor market and two different measures of labor market tightness. These two measures produce qualitatively similar results, and, opposite to the observational studies, suggests that ethnic discrimination in hiring decreases in downturns of the economy.

This is the first study to investigate whether age gaps between classmates (that is, relative age) affect life-satisfaction gaps in adolescence. To this end, we analyse data from the multi-country Health Behaviour in School-Aged Children (HBSC) survey. We find evidence that relative age negatively impacts adolescents’ life-satisfaction. A twelve-month age gap decreases life-satisfaction, rated on a 0-10 scale, by 0.3 points. This negative effect is consistent across countries. Finally, this negative effect does not decrease with the increase in absolute age.

We contribute to the literature on relative age effects on pupils' (non-cognitive) skills formation by studying students' social network. We investigate data on European adolescents from the Health Behaviour in School Aged Children survey and use an instrumental variables approach to account for endogeneity of relative age while controlling for confounders, namely absolute age, season-of-birth, and family socio-economic status. We find robust evidence that suggests the existence of a substitution effect: the youngest students within a class e-communicate more frequently than relatively older classmates but have fewer friends and meet with them less frequently.

Although discrimination against disabled people has been investigated in the labor market, the housing market has received less attention in this regard. This paper focuses on the latter market and investigates whether blind tenants assisted by guide dogs are discriminated against in the rental housing market. The data are collected through a field experiment in which written applications were sent in response to online advertisements posted by different types of advertisers. I find statistically significant evidence that one type of online advertiser, that is, the apartment owner (i.e., a person who advertises and rents out his/her own apartment(s) on his/her own), discriminates against blind tenants, because of the presence of the guide dog, not because of the disability. According to the legislation, this behavior qualifies as illegal discrimination.

In sports and education contexts, children are divided into age groups that are arbitrary constructions based on admission dates. This age-group system is thought to determine differences in maturity between pupils within the same group, that is, relative age (RA). In turn, these within-age-group maturity differences produce performance gaps, that is, relative age effects (RAEs), which might persist and affect labor market outcomes. I analyze the RAE on labor market outcomes using a unique dataset of a particular group of highskilled workers: soccer players in the Italian major soccer league. In line with previous studies, evidence on the existence of an RAE in terms of representativeness is found, meaning that players born relatively early in an age group are over-represented, while players born relatively late are under-represented, even accounting for specific population trends. Moreover, players born relatively late in an age group receive lower gross wages than players born relatively early. This wage gap seems to increase with age and in the quantile of the wage distribution.

In this study, we investigate whether ethnic discrimination depends on labor market tightness. While ranking models predict a negative relationship, the prediction of screening models is ambiguous about the direction of the relationship. Thus, the direction of the relationship is purely an empirical issue. We utilize three (but combine into two) correspondence studies of the Swedish labor market and two distinctly different measures of labor market tightness. These different measures produce very similar results, showing that a one percent increase in labor market tightness increases ethnic discrimination in hiring by 0.5- 0.7 percent, which is consistent with a screening model. This result stands in sharp contrast to the only previous study on this matter, Baert et al. (forthcoming), which finds evidence that supports a ranking model.

This thesis is composed of four self-contained papers and focuses on discrimination in themarket place. Essay 1: “Disability Discrimination in the Rental Housing Market – A Field Experiment onBlind Tenants.” Although discrimination against disabled people has been investigated inthe labor market, the housing market has received less attention in this regard. This paperfocuses on the latter market and investigates whether blind tenants assisted by guide dogsare discriminated against in the rental housing market. The data are collected through afield experiment in which written applications were sent in response to onlineadvertisements posted by different types of advertisers. I find statistically significantevidence that one type of online advertiser, that is, the apartment owner (i.e., a person whoadvertises and rents out his/her own apartment(s) on his/her own), discriminates againstblind tenants, because of the presence of the guide dog, not because of the disability.According to the legislation, this behavior qualifies as illegal discrimination. Essay 2: “Does the design of correspondence studies influence the measurement of discrimination?”(co-authored with Carlsson and Rooth). Correspondence studies can identify the extent ofdiscrimination in hiring as typically defined by the law, which includes discriminationagainst ethnic minorities and females. However, as Heckman and Siegelman (1993) show,if employers act upon a group difference in the variance of unobserved variables, thismeasure of discrimination may not be very informative. This issue has essentially beenignored in the empirical literature until the recent methodological development byNeumark (2012). We apply Neumark’s method to a number of already publishedcorrespondence studies. We find the Heckman and Siegelman critique relevant forempirical work and give suggestions on how future correspondence studies may address thiscritique. Essay 3: “Does Labor Market Tightness Affect Ethnic Discrimination in Hiring?” (co-authoredwith Carlsson and Rooth). In this study, we investigate whether ethnic discriminationdepends on labor market tightness. While ranking models predict a negative relationship,the prediction of screening models is ambiguous about the direction of the relationship.Thus, the direction of the relationship is purely an empirical issue. We utilize three (butcombine into two) correspondence studies of the Swedish labor market and two distinctlydifferent measures of labor market tightness. These different measures produce very similarresults, showing that a one percent increase in labor market tightness increases ethnicdiscrimination in hiring by 0.5-0.7 percent, which is consistent with a screening model.This result stands in sharp contrast to the only previous study on this matter, Baert et al.(forthcoming), which finds evidence that supports a ranking model. Essay 4: “Relative Age Effect on Labor Market Outcomes for High Skilled Workers – Evidencefrom Soccer.” In sports and education contexts, children are divided into age groups that arearbitrary constructions based on admission dates. This age-group system is thought todetermine differences in maturity between pupils within the same group, that is, relative904627 Luca Furmaco_inl.indd 5 2015-02-24 16:58age (RA). In turn, these within-age-group maturity differences produce performance gaps,that is, relative age effects (RAEs), which might persist and affect labor market outcomes. Ianalyze the RAE on labor market outcomes using a unique dataset of a particular group ofhigh-skilled workers: soccer players in the Italian major soccer league. In line with previousstudies, evidence on the existence of an RAE in terms of representativeness is found,meaning that players born relatively early in an age group are over-represented, whileplayers born relatively late are under-represented, even accounting for specific populationtrends. Moreover, players born relatively late in an age group receive lower gross wages thanplayers born relatively early. This wage gap seems to increase with age and in the quantileof the wage distribution.

The advocates of correspondence testing (CT) argue that it provides the most clear and convincing evidence of discrimination. The common view is that the standard CT can identify what is typically defined as discrimination in a legal sense - what we label total discrimination in the current study -, although it cannot separate between preferences and statistical discrimination. However, Heckman and Siegelman (1993) convincingly show that audit and correspondence studies can obtain biased estimates of total discrimination - in any direction - if employers evaluate applications according to some threshold level of productivity. This issue has essentially been ignored in the empirical literature on CT experiments until the appearance of the methodology proposed by Neumark (2012). He shows that with the right data and an identifying assumption, with testable predictions, this method can identify the total discrimination. In the current paper we use this new method to reexamine a number of already published correspondence studies to investigate whether their estimate of total discrimination is affected by group differences in variances of unobservable characteristics. We also aim at improving the general understanding of to what extent the standardization level of job applications is an issue in empirical work. We find that the standardization level of the job applications being set by the experimenter appear to be a general issue in correspondence studies which must be taken seriously.