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Employment discrimination

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Employment discrimination is a form of discrimination by employers on the basis of individual characteristics. This results in the oppression of the individual within the work environment. Employment discrimination can be either intended or unintended. Examples include consciously treating individuals unequally (disparate treatment) or unconsciously creating practices that negatively affect specific groups of people (disparate impact). Many theories exists to explain discrimination, but there is not one widely accepted explanation. This should not be confused with pay differences based on differing occupations or qualifications.

Definition

Employment discrimination happens when employers show bias in hiring, promoting, etc. based on an employee's characteristics.[1] This can affect the economic outcomes of equal employees, both directly and indirectly, through feedback effects.[2] Darity and Mason [1998] summarize that the standard approach used in identifying employment discrimination is to isolate group productivity differences (education, work experience, etc.).[3] Differences in outcomes (earnings, job placement, etc.) that cannot be attributed to worker qualifications are then attributed to discrimination.[3] The key issue in the debate on employment discrimination is the persistence of discrimination; namely, why discrimination persists in a capitalist economy.[3] It is not easy to separate discrimination from productivity-related inequality because gender norms are embedded in labor markets and shape employer preferences, as well worker preferences.[4]

Types of Discrimination

Traditionally, these types of discrimination have been considered separate issues treated in similar ways.[5] More recently, it has been addressed that certain discrimination cases are on the basis of several types at once, otherwise known as intersectionality.[5]

Reasons for Discrimination

Stereotypes

People are not usually discriminated against based on their actual representation, but on their perceived representation, or stereotype.[5] For example, an employer may not hire an applicant because they perceive the applicant to be from a certain country, when in fact the applicant is not from that country. A stereotype is a belief about a particular demographic based on opinions and perceptions, not on facts.[6] Because outdated stereotypes endure, discrimination does as well, causing an uneven "playing field" for those who are stereotyped.[7]

Microaggressions

Microaggressions are indirect insults about people from a particular group.[8] They can be "verbal, nonverbal, and/or visual", but they are often done without thinking.[8] Research has suggested that these microaggressions surface during communication between organizational members in the workplace and are interpreted as discrimination.[9]

Neoclassical Approach

In the neoclassical approach, labor economists explain discrimination based on tastes for discrimination and statistical discrimination theories. Labor market discrimination is defined as the different treatment of two equally qualified individuals on account of their gender, race, age, disability, religion, etc.[10]

In organizations

There are three types of discrimination: employer, employee and customer.[2][3][11]

  1. Employer: The employer has a taste for discriminating against women and is willing to pay the higher cost of hiring men instead of women. Thus, the non-monetary cost brings an additional price of discrimination in dollar terms; the full cost of employing women is the wage paid plus this additional cost of discrimination. For the total cost of men and women to be equal, women are paid less than men.[2][11]
  2. Employee: Male employees have a distaste for working with women employees. They must be paid more than women due to non-monetary cost.[2][11]
  3. Customer: The customer has a distaste for being served by women employees. Therefore, the customers are willing to pay higher prices for a good or service in order to be served by men. The non-monetary cost is associated with purchasing goods or services from women.[2][11]

Non-Neoclassical Approach

In the non-neoclassical view, discrimination is the main source of inequality in the labor market and is seen in both gender and racial earnings disparities in the U.S.[3]

Overcrowding model

The overcrowding model was first developed by Bergmann.[12] According to this model, the employer’s discriminatory preferences force men and women into two different sets of occupations.[13] Although this may not cause a gender wage gap, a wage gap may occur when jobs in the female occupations are fewer than the number of female workers.[13] Employers will take advantage of the fact women have fewer opportunities and pay them less than men.[13]

Institutional models

Institutional models of discrimination do not offer new explanations for discrimination, but instead show the link between the wage gap and gendered occupations.[14][15] These models state that the same set of factors that cause gender differences in pay also cause the segregation of men and women into different occupations.[14][16] Employers then assign specific wages to specific occupations instead of assigning them to people based on qualifications.[14] Because employers attach lower wages to female dominated occupations, there is a pay gap between genders.[14] Within these occupations, there may be equal pay for equal work, but overall, pay is not equal between men and women.[14]

The Internal Labor Market

Created by Doeringer and Piore, the internal labor market is a business in which pricing and distribution of labor is determined by the organization's rules.[17] These markets discriminate by selecting certain workers to enter the organization, usually through promoting people already in the organization.[17] So, employees in the business have privileges the external labor market does not, like "job security and advancement opportunities".[17] Sometimes this is accidental, other times it's intentional to prevent certain groups from entering the organization.[17]

The Dual Labor Market

Doeringer and Piore also established the dual labor market model.[17] In this model, primary jobs are the ones with specific skills, high wages, good promotion opportunities, and long-term attachment.[17] On the contrary, secondary jobs are the ones with less skill requirement, lower wages, fewer promotion opportunities, and higher labor turnover.[17] The dual labor market model combined with gender discrimination suggests that men dominate the primary jobs and that women are over-represented in the secondary jobs.[2]

The difference between primary and secondary jobs also creates productivity differences, such as different levels of on-the-job training.[17] Women also have lower incentives for staying in these jobs since benefits of secondary jobs are low.[17] Women are subject to unintentional job discrimination which alters their productivity, promotion, and earnings negatively.[2]

Combating Discrimination

Employer Efforts to Balance Representation

Some employers have made efforts to reduce unintentional bias.[18] Some companies in software engineering, communications, and design fields have adopted a blind audition approach when hiring.[19] It is an anonymous response to a job application or interview.[19]

According to Michael Arnold there are five steps to combat employment discrimination. [20] The first step is becoming familiar with all anti-discrimination laws.[20] The second is developing and implementing policies in order to combat possible discrimination.[20] Next, companies have to hold anti-discrimination training sessions.[20] The fourth step is being prepared to handled discrimination complaints made by employees.[20] Lastly, employers must "analyze business decisions for unintentional discrimination."[20]

The language of job listings has been scrutinized; some phrases or wording are believed to resonate with particular demographics, or stereotypes about particular demographics, and lead to some women and minorities not applying because they can less easily visualize themselves in the position.[21] Examples cited include "Rockstar" (which may imply a male) and nurturing vs. dominant language.[22] For example, "Superior ability to satisfy customers and manage company’s association with them" vs. "Sensitive to clients' needs, can develop warm client relationships".[22]

Employers concerned about gender and ethnic representation have adopted practices such as measuring demographics over time, setting diversity goals, intentionally recruiting in places beyond those familiar to existing staff, and targeting additional recruiting to forums which are rich in female and minority candidates[23][24] Pinterest has made its statistics and goals public, while increasing efforts at mentoring, identifying minority candidates early, recruiting more minority interns, and adopting a "Rooney Rule."[25] This states that at least one minority or female candidate must be interviewed for each leadership position, even if they are not in the end hired.[25]

Some gender pay differences can be due to differences in negotiations.[26] Either women do not ask for more money, or their requests are not granted at the same rate as men.[26] The resulting differences can be compounded if future employers use previous salary as a benchmark for the next negotiation. To solve both of these problems, some companies have simply banned salary negotiations and use some other method (such as industry average) to peg the salary for a particular role.[27] Others have made salary information for all employees public within the company, which allows any disparities between employees in the same roles to be detected and corrected.[27]

Employees who file a discrimination complaint may be protected against workplace or employment retaliation.[20]

Many countries have laws prohibiting employment discrimination including:

U.S. Anti-Discrimination Laws

See Employment discrimination law in the Unites States.

  1. The U.S. Equal Employment Opportunity Commission (EEOC) is responsible for reinforcing the following federal discrimination laws at qualifying organizations.[20] In order to quality for EEOC coverage, a business must have a minimum of 15 employees, or 20 employees in the case of age discrimination.[20] This includes most employment agencies and labor unions.[20] The EEOC also investigates and assesses discrimination charges of qualifying employers.[20] In situations where they decide discrimination has occurred, they attempt to settle the accusations.[20] If they cannot determine whether discrimination has occurred, they file a lawsuit on behalf of the discriminated individuals.[20] Through "outreach, education and technical assistance programs", the EEOC attempts to prevent discrimination.[20] The EEOC also assist other federal agencies with the "federal government's equal employment opportunity program" in many aspects, including compliance with regulations.[20]
  2. In response to the discrimination occurring in organizations across the country, the Civil Rights Act of 1964 (Title VII) was passed which makes it illegal to overtly discriminate based on an individual's "race, color, religion, national origin, or sex".[20] According to this law, retaliation against a person who has reported discrimination is also illegal.[20] Employers are also required to accommodate employees' religious practices, unless this act would prevent the operation of the organization.[20]
  3. The Pregnancy Discrimination Act is an amendment to the Civil Rights Act, which states that discrimination of women on the basis of "pregnancy, childbirth, or a medical condition related to pregnancy or childbirth" is illegal.[20]
  4. To help reduce unequal pay, the Equal Pay Act of 1963, also known as EPA, was passed.[20] The law states that it is illegal to pay men and women unequal wages in the same business when they do the same job.[20]
  5. The Age Discrimination in Employment Act of 1967 (ADEA) makes it illegal to discriminate against an individual on the basis of age when they are 40 years of age or older.[20]
  6. Title I of the Americans with Disabilities Act of 1990 (ADA) protects qualified people with disabilities.[20] It protects them from discrimination in private business as well as "in state and local governments".[20] Under this law, employers must accommodate qualified applicants and employees with known physical and/or mental disabilities within reason, unless this accommodation would prevent the operation of the organization or cause the employer excessive hardship.[20]
  7. Sections 102 and 103 of the Civil Rights Act of 1991 amend Title VII of the Americans with Disabilities Act.[20] This amendment allows intentional discrimination cases to have a jury trial, and also entitles those who have been discriminated against to be receive compensation.[20]
  8. In Sections 501 and 505 of the Rehabilitation Act of 1973, it is illegal "to discriminate against a qualified person with a disability in the federal government".[20] Under this law, employers must accommodate qualified applicants and employees with known physical and/or mental disabilities within reason, unless this accommodation would prevent the operation of the federal government or cause excessive hardship to the federal government.[20]
  9. As of November 21st, 2009, it is illegal to discriminate on the basis of genetic information, according to The Genetic Information Nondiscrimination Act of 2008 (GINA).[20]This includes any information gained from genetic tests done on the individual or their family members, including family medical history.[20]

Affirmative Action

Affirmative Action is an Executive Order that was signed by President Kennedy in 1961 to promote actions that prevent discrimination.[28] The order was signed in order to allow minorities better access to opportunities, such as education and employment.[28] In 1965, Lyndon B. Johnson signed another Executive Order that expanded Affirmative Action to focus on providing jobs for minorities.[29] Since the order was signed, the gap between white, black, and Hispanic high school graduates enrolling in college has shrunk significantly.[29] A 2016 report by the National Center on Education Statistics shows that African Americans make up 14.1 of undergraduate students, which is an increase from 11.7 percent, whereas the percentage of Hispanic undergrads rose from 9.9 percent to 17.3 percent.[30] A study conducted by Fidan Ana Kurtulus on the impact of Affirmative Action over a 30 year period shows that it had both positive and null effects on different demographics.[31] From 1973 to 2003, jobs for black and Native American men and women increased but jobs for Hispanics and Asians showed no change of statistical significance. [31]

Minimum Wage

Minimum wage can be used as a tool to fight discrimination by restricting wage inequality and guaranteeing a minimum pay to all workers.[32] It also helps to arrange social security.[32]

Despite the potential benefits of implementing minimum wage, a report by Jill Rubery argues that minimum pay wage laws only work if instituted in a particular context.[33] If the policies are administered incorrectly, then it may actually have the reverse effect and cause a pay gap.[33] Disadvantages to minimum wage include: low wages when skills and occupation are not considered, long adjustment period, difficulty in enforcement, and when there are public spending cuts, the real value of the wage may decline due to social security.[32] Minimum wage may also only apply to individuals in formal occupations.[32] Minimum wage must be consistently updated with the cost of living to be an effective anti-discrimination tool.[32]

Another reason for people to be opposed to minimum wage are those who claim it discriminates against minorities.[34] As economist, Mark J. Perry, points out, when minimum wage laws are enacted in some places, it may force employers to get rid of their unskilled workers.[34] This often leads to minorities being unable to find jobs due to discrimination. [34]

Examples of Employment Discrimination

  • During WWII, many women worked in factories to compensate for the lack of male labor.[35] After the war, the men returned home and many women were forced out of their jobs to make room for the incoming male labor force.[35] Although productivity levels of men and women were equal, it was assumed women required more benefits in terms of maternity leave and childcare.[35]
  • The Fair Employment Council of Greater Washington conducted a study in 1994 and found that white women had a higher chance of receiving job interviews, higher chance of receiving job offers, were offered more money, and were offered higher-level positions than black women, even when all other characteristics and qualifications were the same.[36]
  • In 1996, six African-American employees alleged Texaco was “racially discriminatory hiring, promotion and salary policies”, using taped comments from white, corporate officials as evidence.[3]
  • In 1997 the Publix Super Markets were allegedly “gender biases in on the job training, promotion, tenure and layoff policies; wage discrimination; occupational segregation; hostile work environment”.[3]
  • In a study of University of Michigan Law School graduates from 2005, it was found that the gap in earnings between men and women was small immediately following graduation.[37] The gap widened within the next 15 years to the point where women were earning 11 percent less than men with the same credentials in the same job.[37]
  • In 2007 African American employees filed a lawsuit against Walgreen Co. inTucker v. Walgreen Co.[38] The plaintiffs alleged that Walgreens actions resulted in discrimination in promotions of African Americans. In July of 2007 the parties reached a comprehensive settlement of $20 million. [38]
  • According to research conducted in 2013, 62 percent of accountants and auditors are women, but they only make up 9 percent of Chief Financial Officers (CFOs) in the United States.[39] Females in this profession are also underpaid by an average of 16 percent.[39]
  • In 2016 five licensed female paramedics were denied a jobs in the Chicago Fire Department because they did not pass an old fashioned physical abilities test.[40] The pass rate on the physical abilities test for males exceeded the rate for females.[40] These five females were already working for other cities or private ambulance companies as paramedics, and claimed that not being hired was because of gender discrimination.[40] In September of 2016, the Seventh Circuit ruled in favored the paramedics.[40]
  • In September of 2017, Buffalo Wild Wings was sued by the Equal Employment Opportunity Commission because the company refused to hire male applicants for bartender positions because of sex; they wanted female bartenders.[41]
  • In January of 2018, Lowe's Home Centers, LLC paid $55,000 to settle a disability discrimination lawsuit.[42] According to the lawsuit, Lowe's failed to accommodate a department manager who had a disability due to a spinal cord injury.[42] The employee was hired in 2006 as a customer service associate and was then promoted to a department manager in 2008.[42] The company was aware of his disability when the was elected for promotion.[42] In June of 2015, Lowe's notified the employee that he could no longer be provided with accommodation, and demoted him to a non-supervisory associate position. [42]
  • In April 2018, Tarr, Inc. and Zenith, LLC, a San Diego-based company paid $50,000 and provided relief to settle a pregnancy discrimination lawsuit filed by the EEOC.[43] The female employee informed the company of her pregnancy and was terminated a few days later. [43]

See also

Notes and references

  1. ^ "Employment Discrimination Definition". employeeissues.com. Retrieved 1 May 2018. {{cite web}}: Cite has empty unknown parameter: |dead-url= (help)
  2. ^ a b c d e f g Blau, F. D.; Ferber, M. A.; Winkler, A. E. (2010). "Differences in Occupations and Earnings: The Role of Labor Market Discrimination". The Economics of Women, Men, and Work (6th international ed.). Harlow: Pearson Education. ISBN 978-0-1370-2436-0.
  3. ^ a b c d e f g Darity, W.; Mason, P. (1998). "Evidence on Discrimination in Employment: Codes of Color, Codes of Gender". Journal of Economic Perspectives. 12 (2): 63–90. doi:10.1257/jep.12.2.63. JSTOR 2646962.
  4. ^ Elson, D. (1999). "Labor markets as gendered institutions: equality, efficiency and empowerment issues". World Development. 27 (3): 611–627. doi:10.1016/S0305-750X(98)00147-8.
  5. ^ a b c Makkonen, T. (2002). "Multiple, Compound and Intersectional Discrimination: Bringing the Experiences of the Most Marginalized to the Fore" (PDF). Abo Akademi University.
  6. ^ Bible, D., & Hill, K. L. (2007). Discrimination: Women In Business. Journal of Organizational Culture, Communications and Conflict, 11(1), 65-76. Retrieved from https://libweb.uwlax.edu/login?url=https://search.proquest.com/docview/216594041?accountid=9435
  7. ^ Boselovic, L. (2006). Gender stereotypes hold back investors. Pittsburgh Post -Gazette (Pennsylvania).
  8. ^ a b Solorzano, D., Ceja, M., & Yosso, T. (2000). Critical Race Theory, Racial Microaggressions, and Campus Racial Climate: The Experiences of African American College Students. The Journal of Negro Education, 69(1/2), 60-73. Retrieved from http://www.jstor.org/stable/2696265
  9. ^ King, E. B., Dunleavy, D. G., Dunleavy, E. M., Jaffer, S., Morgan, W. B., Elder, K., & Graebner, R. (2011). Discrimination in the 21st century: Are science and the law aligned? Psychology, Public Policy, and Law, 17(1), 54-75. Retrieve from http://dx.doi.org/10.1037/a0021673
  10. ^ Hasmath, R.; Ho, B. (2015). "Job Acquisition, Retention, and Outcomes for Ethnic Minorities in Urban China". Eurasian Geography and Economics. 56 (1): 24–43. doi:10.1080/15387216.2015.1049637.
  11. ^ a b c d Becker, G. S. (1971). The Economics of Discrimination (2nd ed.). Chicago: University of Chicago Press. ISBN 0-226-04115-8.
  12. ^ Bergman, B. R. (1974). "Occupational Segregation, Wages and Profits When Employers Discriminate by Race or Sex". Eastern Economic Journal. 1 (2): 103–110. JSTOR 40315472.
  13. ^ a b c Reskin, B. F. (1944). Sex Segregation in the Workplace: Trends, Explanations, Remedies. Washington, D.C.: National Academy Press. pp. 127–128.
  14. ^ a b c d e Reskin, B. F. (1984). Sex Segregation in the Workplace: Trends, Explanations, Remedies. Washington, D.C.: National Academy Press. pp. 130–131.
  15. ^ Piore, M. J. (1971). "The Dual Labor Market: Theory and Implications". In Gordon, David M. (ed.). Problems in Political Economy: an Urban Perspective. Lexington: Heath.
  16. ^ Pasternak, M. (2011). "Employment Discrimination: Some Economic Definitions, Critique and Legal Implications" (PDF). North Carolina Central Law Review|N. C. Cent. L. Rev. 33 (2): 163–175.
  17. ^ a b c d e f g h i Doeringer, P. B.; Piore, M. J. (1971). Internal Labor Markets and Manpower Analysis. Lexington: Heath.
  18. ^ Chohan, U.W. (2016). Skin deep: should Australia consider name-blind resumes?. The Conversation: Business and Economics. Accessed 13 February 2017.
  19. ^ a b "Blind Auditions Could Give Employers A Better Hiring Sense". npr.org. 2015. Retrieved 22 October 2017. {{cite web}}: Cite has empty unknown parameter: |dead-url= (help)
  20. ^ a b c d e f g h i j k l m n o p q r s t u v w x y z aa ab ac ad ae Arnold, M. "How to Prevent Discrimination in the Workplace". www.xperthr.com. Retrieved 1 May 2018. {{cite web}}: Cite has empty unknown parameter: |dead-url= (help)
  21. ^ "Hire More Women In Tech". Hire More Women In Tech. Retrieved 22 October 2017.
  22. ^ a b Hughes, S. (2016). "'Rockstar' and other words not to use in job postings". marketplace.org. Retrieved 22 October 2017. {{cite web}}: Cite has empty unknown parameter: |dead-url= (help)
  23. ^ "Preparation". www.aps.org. Retrieved 22 October 2017.
  24. ^ "Pre-Hire Connections & Recruiting". www.aps.org. Retrieved 22 October 2017.
  25. ^ a b King, R. (2015). "Pinterest reveals diversity hiring goals for 2016 - ZDNet". zdnet.com. Retrieved 22 October 2017. {{cite web}}: Cite has empty unknown parameter: |dead-url= (help)
  26. ^ a b De Nardi, M.; Dharmasankar, S. (2017). "Female Labor Supply and Why Women Need to Be Included in Economic Models - Federal Reserve Bank of Chicago". www.chicagofed.org. Retrieved 22 October 2017. {{cite web}}: Cite has empty unknown parameter: |dead-url= (help)
  27. ^ a b Nonguchi, Y. (2015). "Some Companies Fight Pay Gap By Eliminating Salary Negotiations". npr.org. Retrieved 22 October 2017. {{cite web}}: Cite has empty unknown parameter: |dead-url= (help)
  28. ^ a b "Affirmative Action: History and Rationale". Clinton Administration's Affirmative Action Review: Report to the President. 19 July 1995. {{cite web}}: Cite has empty unknown parameter: |dead-url= (help)
  29. ^ a b National Conference of State Legislatures (2014). "Affirmative Action Overview". www.ncsl.org. Retrieved 6 April 2018. {{cite web}}: Cite has empty unknown parameter: |dead-url= (help)
  30. ^ National Center for Education Statistics. "Fast Facts". nces.ed.gov. Retrieved 19 April 2018. {{cite web}}: Cite has empty unknown parameter: |dead-url= (help)
  31. ^ a b Kurtulus, F. A. (2015). "The Impact of Affirmative Action on the Employment of Minorities and Women over Three Decades: 1973-2003". Journal of Policy Analysis and Management. 35(1): 34–36. doi:10.17848/wp15-221.
  32. ^ a b c d e Rodgers, J.; Rubery, J. (2003). "The Minimum Wage as a Tool to Combat Discrimination and Promote Equality". International Labour Review. 142 (4): 543–556. doi:10.1111/j.1564-913X.2003.tb00543.x.
  33. ^ a b Rubery, J. (2003). "Pay Equity, Minimum Wage, and Equality at Work" (PDF). International Labor Office. {{cite web}}: Cite has empty unknown parameter: |dead-url= (help)
  34. ^ a b c Perry, M. J. (2015). "Ten reasons economists object to the minimum wage - AEI". AEI. Retrieved 16 April 2018.
  35. ^ a b c Kossoudji, S. A.; Dresser, L. (1992). "Working Class Rosies: Women Industrial Workers During World War II". Journal of Economic History. 52 (2): 431–446. doi:10.1017/S0022050700010846.
  36. ^ Bendick, M. Jr.; Jackson, C. W.; Reinoso, V. A. (1994). "Measuring Employment Discrimination through Controlled Experiments". Review of Black Political Economy. 23 (1): 25–48. doi:10.1007/BF02895739.
  37. ^ a b Noonen, M. C.; Corcoran, M. E.; Courant, P. (2005). "Pay Differences Among the Highly Trained: Cohort Differences in the Sex Gap in Lawyers' Earnings". Social Forces. 84 (2): 853–872. doi:10.1353/sof.2006.0021.
  38. ^ a b "Tucker v. Walgreen Co. - Goldstein, Borgen, Dardarian & Ho". Goldstein, Borgen, Dardarian & Ho. Retrieved 30 April 2018.
  39. ^ a b Chase, M. (2013). "Female CFOs May Be Best Remedy Against Discrimination". CFO Insight. Archived from the original on 9 February 2013. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  40. ^ a b c d "Ernst v. City of Chicago - Goldstein, Borgen, Dardarian & Ho". Goldstein, Borgen, Dardarian & Ho. Retrieved 30 April 2018.
  41. ^ "R Wings R Wild / Buffalo Wild Wings  Sued By EEOC For Sex Discrimination". www.eeoc.gov. Retrieved 30 April 2018. {{cite web}}: Cite has empty unknown parameter: |dead-url= (help); no-break space character in |title= at position 36 (help)
  42. ^ a b c d e "Lowe's Home Centers to Pay $55,000 To Settle EEOC Disability Discrimination Lawsuit". www.eeoc.gov. Retrieved 30 April 2018. {{cite web}}: Cite has empty unknown parameter: |dead-url= (help)
  43. ^ a b "Tarr & Zenith Settle EEOC  Pregnancy Discrimination Lawsuit". www.eeoc.gov. Retrieved 30 April 2018. {{cite web}}: Cite has empty unknown parameter: |dead-url= (help); no-break space character in |title= at position 26 (help)

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