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Political Economy of Racism-page2

Political Economy of Racism-page2 - -Discrimination...

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Why would your returns be different based on race and gender? What explains differences in educational attainment, and differences once you’ve attained the degree? September 13, 2011 Readings this week: Conrad pp. 1-6 and Chapters 14 & 19. What explains racial differences in educational attainment? - Family norms, access to information, preparedness/school quality. What explains racial differences in pay among degree holders? - Field, geographic location, soft skills, connections, prior training. Group Notes Racial differences in attainment. - Affordability - School demographics - Geographic area of schools - School choice/options, Racial Differences in pay at similar attainment. - Relation to employers - Different jobs that people of different race are inclined to take - Different companies pay more than others - Minorities can’t afford certain schools, and sometimes employers higher based on where you got your degree, - If you have a well-connected family, then you children may have more options.
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Unformatted text preview: -Discrimination Earnings Inequality -Implications of McElroy: Finds that workers of color and women earn less than white men with the same level of education…firms do not appear to be treating equally qualified workers the same. -What might motivate employers to do this? -What other important returns to education are described in chapter 14? Implications of Earnings Inequality -Excluded workers who can’t find work in their field, have to settle for different work, or accept employment at lower wages, or go unemployed. -Excluded workers and their families have limited resources, difficulty attaining better skills, trouble maintaining families and communities… -Poverty, unemployment, lost income all reduce national income (tax revenue) and raise spending for social programs. -If highly qualified individuals are being denied employment, then valuable resources are being wasted (inefficiency—reducing national income)....
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