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The Wage Gap

Wage inequality has been extensively studied both by Schiller and
Becker.These two theorists provide different theoretical explanations as
to why there is a prevalent wage gap in society.Becker refers to rational
choice as a cause of wage inequality, while Schiller believes the wage gap
results from different societal discrimination’s.
Schiller suggests that wage inequality is rooted in discrimination in
the labor market.The three types of discrimination that affect the wage
gap are racial, class, and sex discrimination. Discrimination may lead to
reduced opportunity and subsequent depressed incomes for certain
Racial discrimination is prevalent at the lower ends of the labor
market, which results in a concentrated representation of racial minorities
in poverty.There are substantial gaps in rates of poverty across race,
which could be attributed to discrimination.The gap in average incomes
between whites and non-whites is $24,000, and unemployment rates for
Whites, Hispanics and Blacks are approximately 4%, 6% and 8% respectively,
Racial discrimination manifests itself in a few different ways.In
non-market discrimination, differences in incomes are a result of
differences in schooling.In past labor discrimination, previous
discrimination results in minorities being less experienced, less skilled,
and with lower seniority.Finally, there is also current discrimination in
Schiller suggests that controlling for years of schooling reduces the
gap in earnings, but there are fundamental differences in the quality of
schooling received.The wage gap would diminish more if differences in the
quality of schooling could be controlled for.Schiller claims that much of
the evident disparity in earnings between races can be attributed to prior,
non-market discrimination, and that most of the problems of inequality

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