Microeconomics › Section N · Labor markets and income › Topic N.5
Employment discrimination
A pay gap between groups is a fact; discrimination is a conclusion - and the distance between them is where this topic lives. Economics brings to the question a definition, a method for separating gaps into explained and unexplained parts, and a theory of why markets punish some discrimination but not all of it.
In this topic
- The definition and the discipline
- The measured gaps
- Becker's question
- Worked example: what prejudice costs the employer
- The cost of excluded talent
- Roots of the gender gap
- Roots of the racial gap
- Worked example: reading a pay-gap claim
- The policy toolkit
- Common mistakes to avoid
- Key takeaways
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