What policies, when used together with antidiscrimination laws, might help to reduce the
earnings gap between men and women or between white and black workers?

Answer

It has been seen that there has been difference between wages paid to blacks and whites or
males and females in same job, showing discrimination. Government has implemented
antidiscrimination laws but if there are other policies also used then it may help these laws, like
education for everyone, compulsion for employers to employ some percentage of employees
from discriminated class, etc. as these policies will help in automatic uplifing of discriminated
class.

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Principles of Microeconomics for AP® Courses

Chapter 15

Labor Markets and Income

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Video Transcript

For the most part, anti discrimination laws actually have little to no effect on changing the different employment statistics between groups. The reason for that is because there's actually not that much discrimination of any more as compared to years ago. So how do you actually get the same number? The same percentage of, let's say, whites and blacks in the same job? Well, the only way to do that would be to equalize the underlying factors that affect the choices that whites and blacks make now, putting aside the fact of whether or not it's even necessarily desirable to have the exact same percent of every single group doing every different thing. How do we actually equalize this? How do we equalize the underlying factors? Well, let's take a factor like education, and we'll use that, for example, so for education, it turns out that if you have a different amount of education, you tend to make different decisions, and your employer tends to make different decisions as well. If, for example, I failed out of high school, what am I probably not going to do? I'm probably not going to apply for medical school, Okay, but if I graduated high school. If I graduated college, if I did very well in, let's say, a med excuse me, let's say a major like pre med right then maybe all apply to medical school at a much higher rate. That makes sense. So we have to essentially equalize the amount of education between different groups. What's one way to do this? Well, you could do this with something like school choice. If you give, for example, parents the ability to choose which school their child goes to, then a particular group is no longer stuck in, let's say, a failing inner city school. They're able to take their child to a school of their choice, and once you give them that freedom, then their educational outcome will change. Their educational outcome will become better. And that, in turn, will help to equalize the employment outcome that originally started. This whole line of thought

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