Combating Racial Earnings Disparities
Combating Racial Earnings Disparities
This chapter examines whether or not observed gaps in credentials and performance between whites and minorities are larger among establishments that practice affirmative action in hiring than among those that do not. In comparing minorities with whites, there was clear evidence of weaker educational credentials among the former group but relatively little evidence of weaker performance. The chapter also stresses that employment decisions are quite sensitive to the hiring process. An overreliance on personal interviews can weaken the employment prospects of disadvantaged workers, while tests that that simulate workplace decision making are more effective than standardized testing. Furthermore, the chapter looks at the additional factors that can close the racial employment and earnings gaps, and that can improve the employment situation of young men and women.
Keywords: racial employment gaps, earning gaps, whites, minorities, educational credentials, employment decisions, hiring process
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