Employment Discrimination

Discrimination leads to earnings gaps by gender and race. However, economic forces can also lead to reasons not to discriminate. The resource provides an overview of the laws passed to prohibit discrimination.

Introduction

Learning Objectives

By the end of this section, you will be able to:
  • Analyze earnings gaps based on race and gender
  • Explain the impact of discrimination in a competitive market
  • Identify U.S. public policies designed to reduce discrimination

Discrimination involves acting on the belief that members of a certain group are inferior solely because of a factor such as race, gender, or religion. There are many types of discrimination but the focus here will be on discrimination in labor markets, which arises if workers with the same skill levels - as measured by education, experience, and expertise - receive different pay receive different pay or have different job opportunities because of their race or gender.



Source: Rice University, https://opentextbc.ca/principlesofeconomics/chapter/15-2-employment-discrimination/
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