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The relationship between discrimination and economics - Research Paper Example

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This paper explores the relationship between discrimination and economics and aims to contribute to the formulation of policy to bridge whatever gaps may be established. Discrimination is an innate part of societal characteristic that is considered a challenge for those who are discriminated upon…
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The relationship between discrimination and economics
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The relationship between discrimination and economics

Download file to see previous pages... ls of Thomas Sowell (1983) and Walter Williams (1982), Majewsky suggested that markets minimize discrimination and state intervention that retards economic progress of racial and cultural minorities. Several myths were presented against historical examination as follows: Myth 1: Discrimination leads to poor economic performance by an ethnic group. Fact: Considered as axiomatic, the myth mentioned contradicts historical examples. Discriminated groups like the Chinese were despised in Thailand, Vietnam, Indonesia, Malaysia and the Philippines, but today, they control about 70 to 85% of retail in said countries (Majewski, 1988). This, too, can be said of Jews in the West. “From the Roman Empire, through the Middle Ages to the Nazi holocaust, the Jews have endured more religious persecution than any other ethnic minority,” but through hard work, entrepreneurship and education, were able to prosper in most areas around the globe (Majewski, 1998, 23). The second myth was that poor economic performance by an ethnic group was attributed to discrimination. In reality, low income below national average and poor representation in professional occupations among ethnic minorities are prevalent throughout the world. This may not be easily attributed to current practices of discrimination as Majewski (1998) suggested. Another factor that has placed minorities to their marginal status includes banishment from the lands they occupied by colonizers which in turn have given the occupied lands as well as established businesses to their heirs. In this argument, Majewski (1988) presented the different performance levels of three black groups: descendants of immigrants from the West Indies, descendants of free persons of color, and descendants of slaves freed during the Civil War. Among...
This paper presents careful consideration of the discrimination problem, of the theories and the economics of discrimination. The factors that affect or influence the prevalence of the practice of discrimination are being considered in the paper. Throughout history, many points of views about understanding the economics of discrimination have been forwarded.
Economically, discrimination is a practice to maintain economic status of those who are dominant. They practice discrimination to sustain their advantage. However, current global market conditions now provide many individuals and non-dominant classes bigger chance at performing better economically. Policy should now focus on empowering more individuals to become better economic performers.
In many countries especially the democratic ones, the various rights and prerogatives of individuals are protected by laws so that preferences in many matters may not be legally questioned. Many practices and choices of an individual are attributed to his rights and privileges.
Where pure discrimination is practiced, employers may be offered lower wages by the workers discriminated upon. When this happens, the minority wage will be lower at first but eventually, the market process with equalize their wage rates. Employers that hire minority workers at lower wage will make above-average profits. This will attract new firms in the industry that will hire the minority workers at slightly higher offers in order to attract them. This will even out the wage disparity over time ...Download file to see next pagesRead More
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