Racial Disparities in Employment and Education

QUESTION
1- Although more educated than ever before, African Americans remain more likely to be
unemployed than comparably educated Whites, at all educational levels. What can explain racial
differences in rates of return on educational investment? Is obtaining a college degree still a worthwhile investment for African Americans?

2-  Why do you think discrimination against Blacks still exists today despite Title VII’s legal prohibitions?
What do you think can be done to reduce and eventually eliminate discrimination against Blacks
ANSWER
1. Factors Influencing Racial Differences in Employment Rates
Over time, these discriminatory practices and racial biases in the hiring process maintain the stratification of racial hierarchies in employment. This is because, as a result of discrimination in the job searches, some racial and ethnic minorities are left with little alternative but to take up poorly paid and less desirable jobs which in turn perpetuates the cycle of racial disparities in employment rates.
Discrimination in the hiring process, such as racial bias in the vetting of job applicants and the use of different standards and criteria to judge job candidates of different races, has been discussed as a reason for racial differences in employment rates. This can be viewed as an outcome of power inequalities and prejudice which are ingrained within institutions and capitalist societies. It is argued that employers use race as a way to make judgments on the abilities and the work ethics of job candidates, influenced by societal stereotypes and biases.
Studies have also shown that for people of color, not only are they more likely to earn less than their white counterparts in the same occupation, they are also more likely to work in certain low paying and less prestigious jobs. As a result of these racial and ethnic disparities, economists argue that, even if racial discrimination were to disappear, racial and ethnic minorities would still face lower wages and a higher unemployment rate compared to whites due to the unequal distributions of different racial and ethnic groups in the labor market.
Occupational segregation also plays a crucial role in maintaining the disparities seen in employment rates. Occupational segregation is the unequal distribution of certain groups of people into specific occupations. This leads to the overrepresentation of one group and the underrepresentation of another group in particular job sectors. For example, in the US, whites are overrepresented in executive and administrative positions while African Americans are overrepresented in service occupations.
Educational attainment is one of the most important factors that contribute to the disparities in employment rates between racial and ethnic groups. Research has consistently shown that higher levels of education tend to lead to higher wages and a lower likelihood of unemployment among all workers. However, despite increasing educational attainment of the entire population, disparities still exist between whites and racial and ethnic minorities in the job market.
1.1. Educational Attainment
The first factor that is often identified as a contributor to disparity in employment among different racial groups is educational attainment. Educational attainment means the highest level of education that a person has completed. Socioeconomic status, or the social standing or class of an individual or group, is also closely related to educational attainment. Many doors open for people who have high educational attainment. On average, people who have completed higher levels of education earn more income. They are also less likely to be unemployed. Although greater educational attainment has the potential to benefit any individual, regardless of race, it does not seem to lessen the disparity between racial groups. When we examine the reality, it becomes evident that this is not the case for most black workers. And this is not a matter of differences in educational attainment. The bar graph shows that within every level of educational attainment – whether one is looking at people with less than a high school education or people with a bachelor’s degree or higher – blacks have higher unemployment rates than whites. However, if this was really due to differences in educational attainment, one would expect the gaps to at least become narrower as the educational level rises. In other words, the gap between the unemployment rates of whites and blacks would be most narrow for those with the highest educational attainment. Yet the opposite is true for every racial group. As the level of education rises, the gap between the unemployment of whites and blacks actually becomes larger. Additionally, even when blacks and Hispanics both have a bachelor’s degree, their unemployment rates are much higher. This suggests that it is not just educational attainment itself that is the problem. Rather it is the quality and value of the education that is important. For many, educational debt creates a huge financial burden. While it is intended to provide expanded opportunities as an investment in the future, many are unable to obtain that future, and struggle financially with debt. Overall, not having a good foundation in education can be a barrier to class mobility and economic stability in the future. And it is clear that with escalating educational debt in the United States, these obstacles will continue to affect minorities.
1.2. Occupational Segregation
Occupational segregation refers to the practice of minorities being overrepresented or underrepresented in certain jobs and industries. One measure of how much a group is segregated is to look at what sociologists call “Diver’s” statistic, which can range from zero to 100. If the value is zero, it means members of one group are evenly distributed across all industries. On the other hand, a Diver’s value of 100 indicates that each group works in completely separate job categories, with no individual from either group sharing an occupation. However, the average Diver’s statistic has been around 60 for decades, which suggests that a moderate level of segregation exists among whites and minorities. The highest levels of occupational segregation are typically found in states in the south and border regions, while the most integrated places to work in the country are Hawaii, California, and Washington D.C. The consequences of segregation in the workplace can be seen quite clearly. It reinforces economic disparities between races and the wage gap between different groups. Research by John Iceland and others from the University of Maryland has found that minorities tend to work in less well-paid occupations, while whites were more likely to be present in higher-paying jobs. For example, data from 2009 showed that the African American group had a higher proportion of its workers in elementary and secondary schools, compared to the rest of the population. These occupations are not particularly well-paid and hence the wage gap between whites and blacks could be influenced by occupational segregation. The study of Iceland also found that the gap in average pay between Hispanics and whites would be cut by 8 percent if occupational distributions were equalized. Inequalities would also be reduced for African Americans and whites by up to 13 percent. Such evidence further supports the fact that disparities between races in terms of employment were exacerbated by the levels of segregation in different industries.
1.3. Discrimination in Hiring Practices
The assessment of racial discrimination through the study of the labor market is supported by substantial previous research. These studies include the systematic investigation of individuals and groups in different job searching and working environments, the comparison of races in the same or similar roles, and the rate of success of being employed by different races. Research on hiring discrimination can be carried out through field experiments such as “resume audit studies” or computer and survey-based experiments. These types of research aim to create a pseudo job searching environment in which resumes with the same qualifications but different personal information in terms of race are distributed. The research focused on computer models and survey-based experiments aims to provide in-depth cause and effect analysis for hiring discrimination.
In a study done by Bertrand and Mullainathan, the researchers sent out 1,300 fictitious resumes in response to employment advertisements in the Chicago and Boston areas. The study consists of 13 ad categories and 3 records under each category. The white-named candidates are expected to receive 1 callback for every 10 resumes sent, while the black-named candidates need to send in 15 resumes before they get a callback. The results suggest that resumes with the names Emily and Greg were more likely to receive a call or interview than those with the names Lakisha and Jamal. The percentage for white-named applications getting a call, compared to black-named applications, is 11.7 percent and 6.7 percent, respectively. The obtained results reveal that there is a significant and statistically different racial effect on the acceptance rate of resumes.
Hiring discrimination is an unfair act in which an individual is prejudiced against due to race, skin color, or nationality. It is a behavior that can be considered as grounds for legal action in the course of employment. Correctly, it is a violation of federal law for an employer to make any employment decision because of race, color, religion, sex, national origin, age, or disability. This indicates that discrimination is prohibited based on protected status and employee qualifications for the job.
2. The Worth of a College Degree for African Americans
2.1. Economic Benefits of Higher Education
2.2. Social Mobility and Networking Opportunities
2.3. Challenges and Barriers Faced by African American Graduates
3. Persistence of Discrimination against Blacks
3.1. Historical Context and Systemic Racism
3.2. Implicit Bias and Stereotyping
3.3. Unequal Access to Opportunities and Resources
4. Strategies to Reduce and Eliminate Discrimination against Blacks
4.1. Strengthening Legal Protections and Enforcement
4.2. Promoting Diversity and Inclusion Initiatives
4.3. Education and Awareness Campaigns
5. Conclusion