6.7 Discrimination in the Labour Market

What is wage discrimination?

Wage discrimination occurs when individuals are paid differently for the same work based on characteristic sunrelated to their job performance, such as gender or ethnicity

What conditions are necessary for wage discrimination

• Prejudiced attitudes or stereotypes

• Lack of transparency in pay structures

• Limited access to equal opportunities

What is the impact of discrimination on wages and employment

Discrimination can lead to lower wages and limited employment opportunities for affected groups, contributing to income inequality

What are the advantages of wage discrimination

Advantages for employers may include reduced labour costs,

Disadvantages of wage discrimination

Increased turnover rates, decreased employee morale, and potential legal consequences for companies. For the economy, wage discrimination can exacerbate income inequality and limit overall productivity.