14.5 Employment Discrimination

Discrimination occurs in a labor market when employers pay workers with the same economic characteristics,

such as education,experience, and skill, are paid different amounts because of race, gender, religion, age, or

disability status. In the United States, female workers on average earn less than male workers, and Black

workers on average earn less than White workers. There is controversy over to which discrimination

differences in factors like education and job experience can explain these earnings gaps. Free markets can

allow discrimination to occur, but the threat of a loss of sales or a loss of productive workers can also create

incentives for a firm not to discriminate. A range of public policies can be used to reduce earnings gaps

between men and women or between White and other racial/ethnic groups: requiring equal pay for equal

work, and attaining more equal educational outcomes.

14.6 Immigration
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