Racial Discrimination Essay - 2245 Words

The purpose of this paper is to examine the causes, consequences and remedies of racial discrimination in the labor market. Understanding racial discrimination in the labor market is of critical importance because of the sever wage differentials between different races in the market. Most of the economic research on racial discrimination focuses on black and white males. Hence this paper will also be focusing on wage and employment differentials between black and white males. I will start by discussing the research that has been done on the causes of labor discrimination, then, I will explain the consequences and finally the possible remedies. Causes of Labor Market Discrimination One of the most widely accepted reasons for†¦show more content†¦This cost or discrimination implies that he will require a higher premium to work with blacks. A possible solution to this problem would be for an employer to hire a racially segregated workforce (in which case he would be able to pay them the same wage). The chances of this happening are rather slim. Much more common is white needing a higher premium to work with blacks and blacks suffering a wage cut to compensate for the higher premium.(Becker 1971). A discriminatory customer will behave in a similar way. He/she will act as though there are â€Å"non pecuniary† costs from purchasing goods and services from a black person. Hence at the same market price and equal productivity with whites, blacks will sell less and appear less productive. Consequently, they will receive a lower wage, which widens the wage differential gap (Becker 1981). Becker’s model c oncludes that racially prejudiced employers, employees and customers, all result in racial discrimination in the labor market. There is significant empirical evidence in support of this claim. An empirical study was conducted by Charles and Guryman (2007) using a regression model which found that black wages vary negatively with: the prejudice of the marginal white in the state, the prejudice with the lower tail of the prejudice distribution and the fraction of the stateShow MoreRelatedOvert Racial Discrimination and Institutional Racial Discrimination635 Words   |  3 PagesPrior to the 1960s, discrimination was viewed as a creature of prejudice (Feagin Feagin, 1988). What this means is that the problem of discrimination was viewed as one motivated primarily by individuals (or groups of individuals) on the basis of prejudice or hatred. Implicit in this prejudice-causes-discrimination-model (Feagin Feagin, p. XX) was the assumption that the solution to discrimination was one of simply eliminating prejudice. Thus, the elimination of prejudicial behavior wouldRead MoreRacial Prejudice And Racial Discrimination Essay1347 Words   |  6 PagesRacial discrimination is one of many terms used to express the suppression of a race or many races, but more specifically, it refers to the ill-treatment a person or group receives as a result of differences in their race, color, descent, national, ethnic origin or immigrant status. (Australian Human Rights Commission, 2016). Racial discrimination can be perpetrated by individuals within society, and corporate institutions such as schools, the work force and the government, all of which we have seenRead MoreRacial Prejudice And Racial Discrimination1637 Words   |  7 Pagesreferencing the topic of racism and racial discrimination in today’s society, one of the biggest questions that still remain unanswered is as such: Why does racial discrimination still exist? What factors take place within the human mind that might cause feelings of hatred and bigotry? What can result from an individual using racially discriminating language? From times predating even the most notable case of as much, pre-Civil War United States American slavery, discrimination has existed in many differentRead MoreRacial Discrimination And Racial Profiling1524 Words   |  7 Pages In our society today, racial discrimination and inequality continues to be an issue. Regardless of the advancements we make in our society in terms of race, discrimination is something that can not simply be erased. The conflict with discrimination is evident when we look at the issue of racial profiling. Racial profiling refers to the treatment of an individual based on their race or ethnicity (Statistics of Racial Profiling 1). It is often a tool being used by law enforcement when deciding toRead MoreRacial Prejudice And Racial Discrimination859 Words   |  4 Pageshundred percent accurate. A racial comment would be that African Americans are dangerous coming from the fact that there are more African American in prison that any other demographic. In today’s America, racism is practiced in every sort of way from subtle, aversive, to even â€Å"reverse† racism and, many more. the most common way to racially discriminate against a group is through visual processing, ho wever, what causes this to be the most common mean of discrimination, could it be that this is howRead MoreRacial Discrimination And Gender Discrimination962 Words   |  4 Pagesincreasingly being seen, especially on social media. It s a single word which people are using instead of the longer phrases disability discrimination or disability prejudice. Racial discrimination and gender discrimination have their own single words - racism and sexism - and so those ideas can be expressed a little more easily. Disability discrimination is often complicated and misunderstood. At one end of the scale, buildings with steps instead of ramps may be said to be ableist. Less obviousRead MoreRacial Oppression And Racial Discrimination997 Words   |  4 PagesHuman begins since the beginning of time have understood the concept of racial solidarity but yet decides to ignore it. Racial oppression is a direct consequence of a superior race. Racial oppression is the act of power that causes the sta te of being to feel heavily exploited. There are two types of racial oppression that are not commonly well known of, institutionalized and internalized. Institutionalized oppression is expressed when a group of people based on their race has a different chance ofRead MoreA Brief Note On Discrimination And Racial Discrimination1532 Words   |  7 PagesDiscrimination made its way to planet earth way before it could be documented. Racial discrimination happens all over the world both consciously and unconsciously, destroying lives every day. Racial discrimination can best be described as, when a person is treated less favorably than another person in a similar situation because of their race, color, descent, national or ethnic origin or immigrant status. There are many forms of racial discrimination even if we don’t want to face it. Among the mostRead MoreRacial Discrimination And Its Effects On American Culture970 Words   |  4 PagesIf there is one thing I have noticed dur ing my, admittedly, short sixteen years, it is the racial discrimination and obvious bigotry of the those who are not white. Stereotypes and detrimental comments are slung every which way. Others, rely on subtle jabs while some are oblivious to the offense of the people they are around. It seems to me, that people do not seem to care. I have listened to countless conversations where people would nonchalantly insult their own culture and heritage as if theyRead MoreRacial Discrimination778 Words   |  4 PagesRacial zoning is a serious problem many minority groups end up facing. The process of splitting land based on someone’s race is improper. Rutherford B. Hayes, Benjamin Tillman, and Woodrow Wilson are examples of public sectors who not only firmly believe in the segregation of African-Americans and whites but also black inferiorly. Considering these men are of noble standings, there is sufficient evidence to conclude that there are racial tensions from those of high power towards those with a lack