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In this study we compare rates of discrimination across German-born applicants from thirty-five ethnic groups in which various racial and religious treatment groups are embedded, this study allows us to better distinguish taste and statistical sources of discrimination, and to assess the relative importance of ethnicity, phenotype and religious affiliation as signals triggering discrimination. The study is based on applications to almost 6,000 job vacancies with male and female applicants in eight occupations across Germany. We test taste discrimination based on cultural value distance between groups against statistical discrimination based on average education levels and find that discrimination is mostly driven by the former. Based on this pattern, ethnic, racial and religious groups whose average values are relatively distant from the German average face the strongest discrimination. By contrast, employers do not treat minority groups with value patterns closer to Germany's different from ethnic German applicants without a migration background.

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Previous studies have found that the labour market outcomes of Turkish minorities are slightly better in Germany than in the Netherlands. In this paper we test one of the explanations: differences in ethnic discrimination in hiring. We use a harmonised field experiment to test whether discrimination against job candidates of Turkish origin (age 23-25) varies across Germany and the Netherlands, while holding individual characteristics of job seekers constant. We find that, compared to majority candidates, job candidates of Turkish origin are on average eleven percentage points less likely to receive a positive call-back. Moreover, we find that discrimination against Turkish minorities is significantly higher in the Netherlands than in Germany. In Germany, job candidates of Turkish origin are five percentage points less likely to receive a call-back than equally qualified majority candidates, whereas in the Netherlands this ethnic gap is fifteen percentage points. However, the presented evidence does not support the often-mentioned argument that the amount of diagnostic information in application materials explains why discrimination against Turkish minorities is lower in Germany. Overall, adding diagnostic information has little effect on the relative employment chances of job applicants of Turkish origin, both in Germany and the Netherlands.