77). In this section, two theories are laid out: disparate treatment and disparate impact. , Over the past few decades, researchers argue around the explanation for the wage gap between the African American and Caucasian workers. , Institutional models of discrimination indicate labor markets are not as flexible as it is explained in the competitive models. However, since there is barely any professional certification for supervisors, which is a crucial occupation for the process of both hiring and discharge in all industries, injustices might occur when a supervisor is consciously or unconsciously biased against certain racial groups.
This improvement was mostly due to the bans of discrimination from 1960 and abolition of Jim Crow Laws by 1975. , Another type of statistical evidence of discrimination is gathered by focusing on homogeneous groups. In the second occurrence of contrast, differences between tokens and the majority are emphasized which isolates the token group and increases unity among the majority. This was seen in the results and interpretation of the results of Armed Forces Qualifying Test, (AFQT). This then hinders her chances of promotion, especially when superiors have given men, who they believe will "take it like a man", the information they need to improve their performance. In the study, a legal memorandum written by a hypothetical third-year associate was offered to two groups of partners who were from twenty-four law firms. For example: "Superior ability to satisfy customers and manage company’s association with them" vs. "Sensitive to clients' needs, can develop warm client relationships". In Belgium, they are only discriminated if they have more years of inactivity or irrelevant employment. Were you treated differently someone with the same experience, qualifications, and/or education, who is not in your protected class? However, women with fewer options of where to work, such as African-Americans, older married women, housewives and the ones working in lowest paying jobs, wanted to keep their jobs as long as possible. , Although empirical evidence is a tool to use to prove discrimination, it is important to pay attention to the biases involved in using this tool. Another study based on a 1993 survey of all college graduates had similar results for black and white women regarding gender differences in earnings. Again, none of these is because of productivity differentials nor are they the outcome of voluntary choices. Equal Employment Opportunity Commission has issued guidelines for employers, intended to prevent criminal record discrimination from being used as a proxy to effect unlawful racial discrimination. As a result, we are not informed about the causes and nature of discrimination. Of those, 92% say it was somewhat or very common in their workplace. There are two types of evidence that can be used to prove discrimination: direct and circumstantial. , If a company discriminates, it typically loses profitability and market share to the companies that do not discriminate, unless the state limits free competition protecting the discriminators. Another body of people that face widespread group discrimination are racial minorities, mainly Blacks and Hispanics. For example, the feminist economist Deborah Figart  defines labor market discrimination as “a multi-dimensional interaction of economic, social, political, and cultural forces in both the workplace and the family, resulting in different outcomes involving pay, employment, and status”. First, discrimination prevents equity or fairness, when an equally qualified person does not receive equal treatment as another on account of race or gender.
Discrimination, The Concise Encyclopedia of Economics, Library of Economics.