Discrimination within the Labour Market: Theory with Evidence from Britain and the United States

In this article we consider the question of discrimination against black workers and female workers. We do not discuss the issue of discrimination as it applies within the ranks of white males. Analysis of the relationship between earnings and schooling would suggest that discrimination against this latter group mainly takes the form of unequal opportunity in the acquisition of schooling—that is, it occurs prior to labour market entry rather than within the market. Our focus upon blacks and female workers may be justified on the grounds that discrimination against such groups is said to be considerably more widespread. Our analysis is also restricted, for reasons of space, to a consideration of differences in earnings and occupations, omitting questions of unemployment.