Discrimination in Education and Labor Markets

SOC Final Exam

What is discrimination in labor markets?

When workers with similar skills (education, experience, and expertise) receive different pay or have different job opportunities based on race or gender

How do we measure labor market discrimination?

By comparing earnings of individuals with the same qualifications across all factors except race

What do we find when we control for education quality and quantity in labor markets?

Black workers earn about 90% of what white workers earn, indicating a racial wage cap even among equally qualified individuals

What is discrimination in education?

When children in poorer states or districts receive fewer educational resources compared to those in wealthier areas

What are some characteristics of under-resourced schools?

• Less qualified teachers

• Poorly maintained facilities

• Old textbooks

• Ill-equipped playgrounds and labs

Who is affected by education discrimination

Poor individuals, regardless of race, but especially those in low-income homogenous neighborhoods

How are neighborhoods typically divided?

Neighborhoods are often more segregated by income class than by race

Sources of Earnings Disparities (see diagram)

(Non Market Discrimination + Prior Market Discrimination + Current Market Discrimination)

—→ Occupational Disparities

—→ Employment Disparities

—→ Wage Disparities

ALL ———————————————> Disparities in Earnings