EMPIRICAL EVIDENCE

Having analyzed the mechanisms by which the p0litical process and the market economy enforce discrimination, let’; examine the size. of earnings differentials. Table 1~5 shows the ratio of total. annual earnings of males and females of-different minority groups relative to those’ of white males. On average, earnings differentials are substantial for women and for minorities. Note that women are generally penalized in the labor market only once; many minority women show earnings close to those of white women.

Labor economists emphasize that the earnings differentials are not the same as discrimination, There are differences in quality of labor. Many black and Hispanic workers have historically received less education than have whites; women customarily
spend more time out of the labor force than do men. Since both education and continuing work experi- ence are linked to higher pay, it is not surprising that some earnings differentials exist

How do different ethnic groups and sexes rare in the marketplace? Data were examined on the total annual earnings of full-time, year-round workers in different groups in the United States. These data do not correct for education. Iabor-force status, or previous work experience. The most disadvamaged minority-group “males earn only 71 percent of white male earnings. Females earn even less. (Source: 1990 Census, Compiled by Ann Green’ of the Yale Stat Lab using the Explorer program of the 1990 Public Use. Sample. available on’the Internet.)

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