Definition
- Labour market discrimination
- Labour market discrimination arises when workers with the same education, experience and expertise receive different pay or job opportunities because of their race or gender.
- Not to be confused with: Earnings gap
- An earnings gap is a difference between the average wages of two groups, which on its own does not prove discrimination.
Test yourself
What is the difference between labour market discrimination and earnings gap?
Discrimination is unequal treatment of equally qualified workers; an earnings gap is only a difference in averages.