Discrimination in labour market

Topics: Discrimination, Gender, Human skin color Pages: 20 (5725 words) Published: September 24, 2014
Discrimination in the labor market

Brigita Saikeviciute E4215
Valeriya Dimitrova E4238
Vasileios Mavromatidis E4616

University of Minho, Braga, Portugal
June 2012

SUMMARY
This paper analyzes three types of discrimination (age, sexual orientation, gender and race) in the labor market in the different countries all over the world. The results show that the skin color discrimination is the most widespread type of discrimination followed by the sexual orientation discrimination. Unexpected result was about gender discrimination which is the least likely in the EU but the evidence indicates that sex discrimination remains a possible explanation of the unexplained gender pay gap between men and women.

Key words: labor market, discrimination, women, skin color, sexual orientation. JEL: J71

Introduction
It’s all about the money, isn’t it nowadays? We need to buy our food, pay our bills and educate our children. Money is the “necessity bad” today. But even in our modern, global, without barriers world, world in which they teach us that everything is possible, there is still big inequity. The chance for some people to achieve job and to feed their families is much lower than to the others. Even nowadays not only dream and ambitions are enough. When it comes for having a job and building career there is also comes the problem with discrimination in the labor market. This topic is one of the most difficult for researches and usually is hard to be proved that this still exists nowadays. In the following paper we will discuss discrimination in the labor market in different countries and areas. Some nations are more tolerant than the others. Some nations are more acceptable to one type of different people, than the other. To show how different nations act in different discrimination cases is the main subject of this paper. We think that this topic is very important nowadays, because of the globalization and opportunities which exists in the modern world. And while communism was teaching people that all must be equal and have equal rights, capitalism and democracy suppose to give more chances for realization to the people with higher ambitions and to be more tolerant to differences. We are not the same. People have different color skin, speak different languages, had different sexual orientation or even some disabilities. But everyone must have chance to receive job, build a career and prove himself. You cannot threat black person because of the color of his skin. Today some of the most famous people are with some kind of “difference”.

This makes discrimination in the labor market very important topic nowadays. Even difficult to be proved and difficult to be eliminated fully, we want to see in what direction the things changed nowadays, comparing with the past. We want to make a research why people are still discriminated and how this effect can be reduced.

2

Theoretical framework
“Discrimination in the labor market exist when two equally qualified individuals are treated differently in the labor market on the basis of some personal characteristic, unrelated to productivity”(Arrow 1973).

Another standard definition was made by

Ehrenberg and Smith in 1994 “individual workers who have identical productive characteristics are treated differently because of the demographic groups to which they belong”.
In the labor market these days we can find a lot of different jobs which require different sets of skills as well as has different wages and opportunities. But sometimes differences in earnings may arise even between equally skilled workers in the same job because of one of the workers race, gender, sexual orientation or other seemingly irrelevant characteristics. In the Multinational Corporation (MNC) must be applied equal opportunity policies which are trying to protect human rights and prevent from discrimination and must be taken in mind all the specific characteristics of the country in which company...
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