This paper briefly examines how the wage gap is caused by racial discrimination factors. It discusses two different theories on this matter; one refers to rational choice as a cause of wage inequality, while the other believes the wage gap results from societal discrimination.
From the Paper:
"Racial discrimination is prevalent at the lower ends of the labor market, which results in a concentrated representation of racial minorities in poverty. There are substantial gaps in rates of poverty across race, which could be attributed to discrimination. The gap in average incomes between whites and non-whites is $24,000, and unemployment rates for Whites, Hispanics and Blacks are approximately 4%, 6% and 8% respectively, according to Schiller."
"Wage Inequalities" 09 February 2012. Web. 12 Feb. 2012. <http://www.academon.com/Essay-Wage-Inequalities/50039>
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