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Chapter 17: Problem 2

Define economic discrimination. Is the fact that one group in the population has higher earnings than other groups evidence of economic discrimination? Briefly explain.

Short Answer

Expert verified
Economic discrimination refers to inequality based on characteristics like race or gender, not productivity or qualifications. Merely having one group earn more than another doesn't confirm economic discrimination. The reason behind the disparity, its underlying context, and basis must be investigated. If the higher earnings are due to unbiased factors like work field, education, or skills, it's not economic discrimination. But, if these earnings are primarily because of personal characteristics, then it could indicate economic discrimination.

Step by step solution

01

Definition of Economic Discrimination

Economic discrimination refers to the unequal treatment of individuals or groups based on certain characteristics such as race, gender, age, etc., rather than on their productivity or qualifications. Discrimination may manifest through different economic indicators, such as wage gaps, education opportunities, access to resources, or hiring practices.
02

Understanding Earnings Disparity

The phenomenon where one group has higher earnings than another group occurs due to various factors, like field of work, level of education, experience and skills, among others. It doesn't directly indicate economic discrimination.
03

Analyzing the Context

When examining earnings disparity for the existence of economic discrimination, context is crucial. If the higher earnings among a specific group cannot be attributed to factors like education, experience, or qualifications, and instead is based largely on characteristics such as race or gender, it could potentially be a sign of economic discrimination.

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