Wearing Your Religion: How Labor Markets Price Visible Identity

We study the effects of displaying gendered religious identity --headscarf for women and Islamic beard for men-- on labor market outcomes in Indonesia. 

In collaboration with a large job portal we implement a series of experiments with a pool of over 1,200 employers and 1,800 job seekers. Using a modified version of the Incentivized Resume Rating (IRR) method, we find that displaying religious identity reduces the rating received from employers and the probability of being interviewed. 

The penalties for candidates with headscarf and beard are generally similar in magnitude, and do not vary across job levels, or contact with customers. Administrative data from the job portal confirm the existence of a penalty for profiles wearing religious symbols, measured in terms of download rates of candidates' files. In a belief elicitation exercise with employers, we find that candidates with a headscarf or a beard are ranked lower in a number of personality traits potentially important in the workplace. 

Finally, we elicit beliefs of job seekers and find that they are largely unaware of the penalties associated with displaying religious identity.