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Follow the link for more information. In the United States, despite the efforts of equality proponents, income inequality persists among races and ethnicities. Wages from the labor market are the primary source of income for most families in America, and income is a socio-demographic status indicator that is important in understanding the building of wealth. The documented history of the Racial Wage Gap in the United States goes back before the Civil Rights Act, where many modern causes of racial wage inequity, such as educational disparities and discrimination, stem from were even more prevalent. However, aside from statistics of wage discrepancy between black individuals and their white counterparts, much is still unknown of wage inequity due to a lack of literature with solid empirical data to link data with an accurate model of wage discrimination. Subject to debate during the 1970s and 80s in the scholarly community was the link between geographical location and wage inequality. Historically, there have been links in the discrepancies between not only earnings from labor, but in the benefits received voluntarily from employers as well.
Benefits include health care, pensions, holiday and vacation days, among other government mandated and voluntary benefits. Studies of the wage gap for various minority races in the United States have revealed a number of factors that contribute to the differences in wages observed between white Americans and Americans of other races. The factors contributing to the wage gaps for various races and the degree to which they affect each race varies, but many factors are common to most or all races. Education being one of the leading determinants of wage, contributes in a similar manner to the racial wage gap. Varying education levels among races lead to different wages for various racial groups.
Education affects wages because it allows access to occupations of higher status that offer greater earnings. When the education of different groups becomes more equal, wage gaps decrease, though they do not disappear. A 2017 study found that the boost to earnings from legal education was lower for minorities than for whites, although all groups typically benefited from additional education. Distribution of US occupations by race. The occupation distribution of employed persons in the United States, 1997.
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The way in which races are distributed throughout occupations affects the racial wage gap. White and Asian Americans, who have the highest median incomes, are concentrated more in professional, executive, and managerial occupations than blacks, Hispanics, or American Indians. Occupational distribution varies for women of various races as well. White and Asian women are more likely to work in managerial and professional occupations, while black, Hispanic, and American Indian Women are more likely to work in service occupations.
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A study conducted by Kenneth Couch and Mary Daly found that the occupational distribution between blacks and white improved between 1970 and the 1990s. In 1968, a black male was only 20 percent as likely to be employed as a manager as a white male and only 40 percent as likely to work in a professional occupation. The globalization of the United States’ economy in the 1970s and 1980s caused a shift in the U. As the United States joined the global market economy, three outcomes occurred. In the new globalized economy that formed, much of the United States’ manufacturing was exported, which affected most adversely the group of Americans in the lowest section of the education distribution, a section in which minority groups are overrepresented.
The increase in overall wage inequality created by the new economy’s lower demand for physical labor disproportionately affected minorities as well. The distance between jobs and the location of minorities’ homes affects the ability of minorities to find profitable work. Saskia Sassen found that the redistribution of manufacturing jobs out of central cities in the 1980s negatively affected the wage gap between blacks and whites because most blacks live in cities. A person of a minority race that is not born in the United States fares worse than those who are native born in terms of wages. The worst affected are men and women from Japan and China and Filipino women.
When wage gaps in occupations for blacks and whites are compared, it is observed that occupations that depend on social networking for success tend to have the largest racial disparities, while occupations in which success does not depend on the type of clients served tend to have the least racial disparities. When human capital, skills, and other factors contributing to the racial wage gap are taken into account, many researchers find that there is still a portion of the racial wage gap that is unexplained. Many attribute this to another factor: race. 20 percent is due to different occupational distributions between blacks and whites. Discrimination based on race has been found in other research as well.
Seventy-four percent of employers in one study were found to be racially biased against blacks, and blacks have been found to make lower wages than whites working in the same industry. For instance, the median black male worker earns 74 percent as much as the median white male worker, while the median Hispanic male worker earns only 63 percent as much. Comparison of earnings by race, 1970 and 1997. Black and Hispanic Male Earnings as a Percentage of White Male Earnings, 1979 and 1997.
Comparison of weekly earnings by race, 1965-1995. The history of Black Americans in the United States is one characterized by social control and domination. The disparity in wealth between Black and White America has a history as long as the relationship between the two groups. The Civil Rights Act of 1964, which forbade employers from discriminating on the basis of race, was one of the earliest and greatest influences on the black-white wage gap. From the ending of legal segregation through the mid-1970s, the black-white wage gap continued to narrow. However, from the mid-1970s until almost 1990, progress in wage equality greatly slowed.
From 1968-1979, the black-white wage gap decreased by an average of 1. Analyses have uncovered some of the underlying influences in the improvements of the black-white wage gap. 30 percent of the wage gap convergence can be attributed to changes in black education and experience. More equalization in employment distribution also influenced the convergence during those decades. The decline of the black-white wage gap in the 1990s was greatest for those who have less than 10 years of potential experience, for whom it decreased 1.