ABSTRACT

Comparisons between men and women, blacks and whites, and other groups show different patterns of employment and different average levels of compensation for work. These differences persist, to a lesser degree, in comparisons of individuals with similar levels of educational attainment and job experience. When individuals of different genders and racial groups are matched on these characteristics and other observable traits, white males enjoy higher wages, higher non-wage compensation, a lower probability of experiencing unemployment, and other advantages. Economists and sociologists cannot fully explain these patterns on the basis of observable differences between members of these groups, other than group membership itself. Empirical research in this field seeks to identify the impact of discriminatory decision-making in the job market, and distinguish it from the knock-on effects of personal choices and differential treatment in society’s other institutions.