Housing, Labor Discrimination, and Motherhood Wage Penalty

SOC Final Exam

What is an FHA loan and who benefits from it?

An FHA (Federal Housing Administration) loan is a mortgage insured by the FHA, often helping buyers with limited savings or lower credit scores.

What was the goal of FHA loan standardization?

To make home loans easier to sell on the secondary market by standardizing terms and underwriting rules.

How did FHA loan standardization contribute to housing discrimination?

It supported redlining and racially restrictive covenants, reinforcing segregated neighborhoods and racial wealth disparities.

What is redlining?

Redlining is the practice of refusing loans to people in certain neighborhoods, often based on race or ethnicity.

What did racially restrictive covenants do?

They were agreements that prohibited selling homes to people of certain races, contributing to segregation.

What is the Fair Housing Act of 1968?

A federal law that outlaws discrimination in housing-related transactions, including lending and renting.

Does discrimination in housing still exist today despite the Fair Housing Act?

Yes, enforcement challenges mean discriminatory practices still persist, affecting wealth distribution and investment.

What does the Dissimilarity Index measure?

It measures the level of racial or ethnic segregation across neighborhoods in a city or metro area.

Is the Dissimilarity Index still used today?

Yes, it is still a tool used today to assess geographical segregation.

What defines labor market discrimination?

When workers with the same qualifications receive different pay or opportunities based on race or gender.

What are three explanations for labor market discrimination?

• Past Discrimination (e.g., historical exclusion from education)

• Current Discrimination (e.g., biased hiring, wage-setting)

• Other Factors (e.g., different job preferences not due to bias)

What is the motherhood wage penalty?

It refers to mothers earning less than childless women with similar skills and experience.

What are some reasons suggested for the motherhood wage gap?

• Career breaks reduce skills

• Preference for more flexible, lower-paying jobs

• Assumption that mothers are less committed to work

• Employer discrimination against mothers

• Mothers may prioritize caregiving over career advancement