The Wage Gap

             Wage inequality has been extensively studied both by Schiller and
             Becker. These two theorists provide different theoretical explanations as
             to why there is a prevalent wage gap in society. Becker refers to rational
             choice as a cause of wage inequality, while Schiller believes the wage gap
             results from different societal discrimination's.
             Schiller suggests that wage inequality is rooted in discrimination in
             the labor market. The three types of discrimination that affect the wage
             gap are racial, class, and sex discrimination. Discrimination may lead to
             reduced opportunity and subsequent depressed incomes for certain
             Racial discrimination is prevalent at the lower ends of the labor
             market, which results in a concentrated representation of racial minorities
             in poverty. There are substantial gaps in rates of poverty across race,
             which could be attributed to discrimination. The gap in average incomes
             between whites and non-whites is $24,000, and unemployment rates for
             Whites, Hispanics and Blacks are approximately 4%, 6% and 8% respectively,
             Racial discrimination manifests itself in a few different ways. In
             non-market discrimination, differences in incomes are a result of
             differences in schooling. In past labor discrimination, previous
             discrimination results in minorities being less experienced, less skilled,
             and with lower seniority. Finally, there is also current discrimination in
             Schiller suggests that controlling for years of schooling reduces the
             gap in earnings, but there are fundamental differences in the quality of
             schooling received. The wage gap would diminish more if differences in the
             quality of schooling could be controlled for. Schiller claims that much of
             the evident disparity in earnings between races can be attributed to prior,
             non-market discrimination, and that most of the problems of inequality
             ...

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The Wage Gap. (1969, December 31). In MegaEssays.com. Retrieved 22:31, April 19, 2024, from https://www.megaessays.com/viewpaper/200427.html