This is a fascinating example of how discrimination in compensation can grow over time and how when combined with differences in promotion and different contributions to retirement and social security, gaps in wealth can be exacerbated. 1.Use a calculator to make a chart projecting the effects of discrimination in initial salaries offered to Blacks and Whites and annual salary increases for two equally qualified, college-educated new hires. a)Make columns showing the starting salaries of $30,000 for the Black employee and $33,000 for White new employee. Put dollars on one axis of the graph and time on the other. Assume the Black employee earns a 4% increase per year, and the White employee earns a 6% increase per year, based upon their evaluated performance. What is the salary difference after 10 years? After 20 years? See data below, noting that salary differences are about 15k and 40k after 10 and 20 years. b.
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