Income Inequality of African Americans
Besides the racial discrimination in labor market, one key reason for disparity is educational attaintment. (Newman and Pedulla, 2010). Low skilled workers, who get less education, work for low qualification jobs and that means lower incomes than higher positions. So we can certainly say that the other factor of the income inequality is education. Because the primary criterion to possess a job is education. No one can maintain his/her life without income and anyone can earn money without a job. Income and job link to the education. When employers recruit someone to a job, they first look at that person’s education and job’s requirements are appropriate or not. So education is an important factor to people’s welfare. In this case the one reason that why African Americans income lower compared to whites is their level of education. Because the investment on education is higher in whites than blacks, the return of course is higher either. Schooling has positive effect on the white workers. (Greene and Rogers, 1994). Because the blacks have received lower education attaintment and that effects their wages. Greene and Rogers also explain that an additional year in the school increases the wage’s of an employee by 69 cents per hour for blacks and 96 cents for whites. And the return to a linear years of education is 7.6% for whites and 4.3% for blacks. So they