Discrimination against immigrants-measurement, incidence and policy instruments 1 Discrimination is a key obstacle to the full integration of immigrants and their offspring into the labour market and the society as a whole. This chapter provides an overview of discrimination against immigrants and their children in OECD countries-its measurement, incidence and policy solutions-on the basis of the empirical literature and policy practices. The actual prevalence of discrimination is difficult to assess, since the disadvantage of immigrants and their offspring in many domains of public life may be attributable to many other factors-both observed and non-observed-than ethnic origin itself. Testing studies which try to isolate the effect of discrimination in hiring suggest that it is not uncommon for immigrants and their offspring to have to send more than twice as many applications to get invited to a job interview than persons without a migration background who have an otherwise equivalent CV. Most OECD countries have taken measures to combat discrimination, although the scale and scope of the measures varies widely. Much of the effect of most policy measures against discrimination appears to stem rather from raising awareness about the issue than from any direct influence which they may have on preventing discrimination. • In recent years, diversity policy instruments have been tested in a growing number of OECD countries. While these are promising tools, it is difficult to assess their effectiveness, since it is generally those employers who are most interested in diversity who participate. More generally, it seems that much of the effect of policy measures against discrimination-in particular regarding legal constraints-stems more from raising awareness about the issue than through any direct influence which they may have on preventing discrimination. • Such awareness-raising seems particularly important since there is growing evidence that discriminatory behaviour does not necessarily stem from individual preferences but often from negative stereotypes about immigrants and their children. For example, employers seem to value certain characteristics that tend to be associated with better integration. This suggests that a balanced public discourse on immigrants and their integration outcomes would also contribute to reducing stereotypes and thus combating discrimination. Definition and measure Discrimination against immigrants-definition, causes and consequences In the context of this chapter, discrimination is understood as unequal or differential treatment that disfavours an individual or a group and that is based on origin, ethnicity, race or nationality. 2 Becker (1957), in his seminal work on the economics of discrimination, distinguishes two types of discrimination-taste-based and statistical. The former occurs when economic agents (e.g. employers, home owners, banks, etc.