Outten & Golden: Empowering Employees in the Workplace

Posts Tagged ‘hiring discrimination’

Wage gap between blacks and whites is larger today than it was 40 years ago

Monday, September 18th, 2017

It’s near impossible for black Americans to achieve parity with their white counterparts in the labor market, according to two new studies which show that they are underpaid and discriminated against throughout the hiring process.

Earlier in September, the Federal Reserve Bank of San Francisco reported that the wage gap between black and white Americans is increasing, based on findings from the Bureau of Labor Statistics. In 1979, the average black American man made 80 cents on the dollar to what a white American man made; in 2016, he made just 70 cents on the dollar. There was a similar widening in wage gap for black and white women, who made 95 cents for every dollar an average white woman made in 1979, but only 82 cents in 2016.

“The findings point to persistent shortfalls in labor market outcomes for black men and women… that cannot be fully explained by differences in age, education, job type of location,” the report read. “Especially troubling is the growing unexplained portion of the divergence in earnings from blacks relative to whites.”

Economists are worried about the growing “unexplained portion of divergence,” which has grown from 8 percentage points in 1979 to 21 percentage points in 2016. The researchers note that factors such as “discrimination, differences in school quality, or differences in career opportunities – are likely to be playing a role in the persistence and widening of these gaps.”

But these wage disparities don’t even account for another major problem facing black Americans: getting a job in the first place. In another recent studyresearchers from Harvard, Northwestern University and the Institute for Social Research in Norway have found there has been no change in the level of hiring discrimination in more than 25 years.

The study sent out resumes with similar levels of education and experience, the only difference being the name – some resumes had stereotypically black and Latinx names while others had stereotypically white names. As a second part of the study, applicants with similar qualifications (but of different races) went in to apply for a job in person.

Researchers concluded that, on average, a white job applicant was 36 percent more likely to receive a callback for an opening than an equally qualified African-American candidate. White job seekers also received 24 percent more callbacks than equally qualified Latinx candidates. “These findings lead us to temper our optimism regarding racial progress in the United States,” the study read. “At one time it was assumed that the gradual fade-out of prejudiced beliefs, through cohort replacement and cultural change, would drive a steady reduction in discrimination treatment. At least in the case of hiring discrimination against African-Americans, this expectation does not appear to have been born out.”

These two studies come only a week after new Census Bureau data showed the grim inequality that persists in American society. While there was an overall increase in median wealth for Americans, African-American and Latinx families still lagged far behind. An average white families now earns around $65,041, compared with $47,675 for a Hispanic family and $39,490 for an African-American family.

This article was originally published at ThinkProgress on September 18, 2017. Reprinted with permission.

About the Author: Luke Barnes is a reporter at ThinkProgress. He previously worked at MailOnline in the U.K., where he was sent to cover Belfast, Northern Ireland and Glasgow, Scotland. He graduated in 2015 from Columbia University with a degree in Political Science. He has also interned at Talking Points Memo, the Santa Cruz Sentinel and Narratively.

Sometimes hiring discrimination is committed by a bigot—and sometimes it's by standardized test

Monday, May 29th, 2017

You might think that a standardized test would be a way to eliminate discrimination from job hiring—everyone gets the same questions, and everyone’s answers are graded in the same way. But you’d be wrong. In fact, some standardized tests used widely by employers looking to screen job-seekers can be instruments of discrimination, Will Evans reports. One test alone caused illegal discrimination against more than 1,000 people, according to the Labor Department:

At a California factory for Leprino Foods Co., the world’s largest producer of mozzarella cheese, WorkKeys put 253 Latino, black and Asian applicants at a disadvantage, the department found. Leprino Foods eventually agreed to pay $550,000 and hire 13 of the rejected job seekers.

At a chemical plant in Virginia, an auto parts factory in upstate New York and an engine plant in Alabama, the tests also illegally screened out minority applicants, according to Labor Department records. At a General Electric Lighting plant in Ohio and an aluminum factory near Spokane, Washington, WorkKeys unfairly hurt the chances of female applicants, officials found.

The tests didn’t adequately measure whether an applicant would be good at the job, violating civil rights protections, according to the government. The employers paid a settlement to unsuccessful applicants and scrapped the tests.

But other employers—including local and state governments in many places—continue to use tests that aren’t relevant to the jobs they’re hiring for, potentially screening out people who are qualified for the jobs they’re trying to get.

While some workers have gotten settlements for the test-based discrimination they faced, they’re a drop in the bucket. And Evans’ story includes a warning for the future:

The cases faulting WorkKeys represent just a sample of potential problems in the job market, because the government agency that brings them audits a small fraction of federal contractors each year. That office could shrink under President Donald Trump, who has called for slashing the Labor Department budget overall by 21 percent.

Of course.

This blog was originally published at DailyKos.com on May 29, 2017. Reprinted with permission.

About the Author: Laura Clawson has been a Daily Kos contributing editor since December 2006 and labor editor since 2011.

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