Introduction When comparing white men vs black men employees a clear difference or racial discrimination is shown, the first difference is in the amount of money a white employee makes vs a black employee. Studies have given evidence of this statement time and time again. I will discuss many of these studies in my paper, showing the clear proof of the racial gap in earnings. On average across the board black workers make less than white workers doing the same job, and having the same qualifications. This difference can be rather large in some cases.
This proves that although some blacks' incomes have increased, they do not always live in neighborhoods they can afford because the area is usually predominately white. The U.S. Department of Housing and Urban Development found that anti-black discrimination was widespread in the housing industry in 1992 (Smith 105). This practice can be found in the workplace. Ed Smith, Ph.D. found that "blacks with college degrees had a 13 percent unemployment rate in 1987 compared to five percent for whites" (Smith 112). Many studies exist that prove that college-educated blacks are not much better off than high-school graduates.
African Americans that are college educated are not only eligible for the same jobs as college educated White Americans, but are earning similar wages, and in some cases higher. In fact, in Wilson’s publican he cites statistics from the U.S. Census Bureau to prove this point, “Data from the 1970 Census of Population show that in 1969 black male graduates age 22 to 24 received a slightly higher average income than comparable to whites”. This statistic debunks any theory that race is a primary determinant of success in this country, since in some cases educated black people are better off economically than privileged educated white people. If educated African Americans are able the same or higher wages in professional jobs as their white counterparts than it is clear that the main determinant of socio-economic status is class rather than race. Wilson noted the change in this occurrence between the current times and in the past.
High-level occupations, -the managerial and executive category- showed the lowest racial gap of only 33%! The highest racial gap of 64% occurred in low-level jobs. Oftentimes, these were “equal opportunity employers.” Furthermore, discrimination is even greater for African-American females than it is for African-American males. “The lowest scoring callback rate of black female names was 6.1 percentage points behind the lowest scoring white female name.” Many blame labor market discrimination as the cause to why African-Americans are almost twice as likely to be unemployed than White Americans. It could also be why African-Americans earn an average of 25% less than White Americans.
Contrary to Forbes’ highest income list is Forbes’ profile of the 400 wealthiest Americans. This list contains few if any African Americans. Therefore, to explain this disparity a clear distinction had to be made between what is wealth and what is income. Oliver and Shapiro define income... ... middle of paper ... ...he wealthy, particularly in the form of an income tax and higher inheritance tax and using the subsequent proceeds to provide more welfare programs to the poor. According to Tumin, the chances of obtaining a higher rewarding job could be equalized if the costs of training individuals could be absorbed by the society at large.
Other researchers have found that the wage inequality is caused by race and gender discrimination “double/multiple jeopardy” (Evans & Herr, 1991; Sokoloff, 1992). Then there are researchers who are right in the middle, who argue that discrimination is a part of the cause of wage inequality but it is not necessarily the main factor (Browne & Misra, 2003). All the researchers seem to (generally) agree that Black women are affected by race and gender discr... ... middle of paper ... ...). Has the Race Penalty for Black Women Disappeared in the United States?. Feminist Economics, 8(2), 115.
“April third has been declared by Feminist and labor groups as ‘Equal Pay Day’ because it supposedly takes 93 calendar days for women’s wages to catch up to men’s.” 3 Many people believe that sex discrimination is the main reason for the pay gap. However, several factors must be taken into consideration. On average, women earn 74 cents for each dollar earned by the male population. This number is calculated by comparing median annual earnings of men and women. But several other differences between the sexes make up for the variation in pay.
Accordingly, this theory takes certain points made by other theories of poverty and puts them in the context of race, making it a more comprehensive explanation of poverty. In examining labor, non-work among black men aged 25-40 without high school degrees has been increasing at a more rapid rate than the rate for non-work among white men in the similar situation since the 1970s. The theory of labor markets in explaining poverty summarizes that those who do not work steady jobs or work regularly are more likely to be poor. If black men are not working as much as they used to, it should explain why poverty among black people is higher than it is for white people. The reason for their non-work can be explained by a number of reasons, including disincentives, labor markets, and culture, but it is best explained by institutional problems and structural
It is the difference between male and female pay, usually for the same job. On average, men typically earn 25 cents more than women. For every dollar that a man makes, a woman makes only 75 cents. Although the wage gap between men and women in the U.S. seems complicated, as it has been going on for so long, there are some simple reasons and solutions that can help lessen the negative effects it causes. The wage gap in America started during World War II.
Key arguments The overall main idea in The Hidden Cost of Being African American by Thomas M. Shapiro is that White Americans have a advantage in terms of economic status compare to African Americans because White America not only have “Wealth” but also “Income”. Whereas African Americans only have “Income”. Shapiro uses three key arguments to support this overarching idea. The first one that he examines is how family inheritances adds on to racial discrimination by separating Whites and Blacks in terms of home, school, and job districts. By having this separation, it leads to a huge wage gap for African Americans.