Some argue that the government doesn\'t need affirmative action programs or othe

Question

Some argue that the government doesn't need affirmative action programs or other anti-discrimination policies because the profit motive provides sufficient motivation to eliminate discrimination in employment.

a. Explain this argument.

b. Explain why this might NOT happen i.e. why discrimination might continue even where employers are motivated by profits.

c.   Affirmative action admissions policies help minorities who would otherwise be unable to get into a selective university to attend the university. What effect might such a policy have on the black/white wage gap? Explain.

d.   Under statistical discrimination how would you expect affirmative action admissions policies to change the wages of minority college graduates?

e. Is there a theory of discrimination in which affirmative action admissions policies increase the wages of minority college graduates? Explain.

Explanation / Answer

a.

Discrimination in employment means employees are preferred based on their color, religion, sex, etc. Such preferred employees are used to hire, paid more, and provide extra benefits. Employee discrimination by employers is prohibited. Therefore, government needs to do some action to prevent it.

It is argued that there is no necessity to take action against discrimination. Earning profit is the ultimate goal of employers. Employees work and help to achieve such goal. As long as employers get profit they don’t require discrimination, because they want to break the winning combination.

b.

Discrimination might continue although employers have profit motive. Discrimination preference comes out of origin. Suppose a person of particular religion prefers that religion only. Such thing can’t be prevented either. Therefore, the government restriction is required.

c.

Admission policy helps minorities to get education. Once they are qualified they will be equally evaluated with majorities and there will be no wage gap.

d.

Minority college graduates with high score can’t be overruled by employers, because they become indispensable to the organization. They can do work with better excellence than a majority staff. Therefore, the minority wage will improve.

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