Earning Gaps

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Earning gaps are the differences in wages for the same job descriptions for different people in an economy. They are mostly experienced by minority groups who get less pay than the rest while performing the same functions or tasks. This article discusses the earning gaps between whites and visible minority groups in public and private sectors.

The study on the differences between minorities and whites with the same qualifications. However, these studies do not analyze the magnitude of earning gaps consistently and how much wage difference is due to discrimination. The inconsistency in these studies is due to the different treatments that immigrants are given, control variables, different earning choices measures, and other variables that have foreign policy and social implications. Making gaps, studies conducted by various researchers have concluded in additional findings. Some have suggested that earning differences mainly were visible within the population of people born in Canada for the visible minority population. Others suggest that the gap between the visible minority wages and the whites is because they are productivity-related (Feng and Simon, 2010). A more diverse conclusion is that the gap differences exist in black communities. In contrast, others found no significant wage gaps among visible minorities in white settlings, but there were wage gaps for women.

Practices conducted to analyze the gap difference should separate analysis for immigrants and the people born in Canada. This reduces the likelihood of overestimating the earning gaps between the two groups because the minority population often consists of recent immigrants who receive lower returns for their services due to barriers like difficulties in language and culture, social networks, and quality education. Unfair treatment and discrimination are the leading factors experienced by minority groups, mainly due to race and skin color. Blacks report the highest number of discrimination at 32 percent, followed by 21 percent among Asians and then Chinese at 18 percent (Feng and Simon,2010). Research has shown that Whites get three-time more job offers than other visible minority groups. However, this does not link discrimination to earning gaps because if it were the case, blacks would have the most significant disadvantage to earnings they do not.

Interestingly, the visible minority groups were found to have much higher education levels than the white who were earning more than them. About 61 percent of women and 58 percent of men had university degrees compared to 42 percent and 39 percent in men and women, respectively (Feng and Simon, 2010). Despite the difference in education levels, the whites still have more work experience years than the visible minority groups. This shows that they are receiving more job offers than their counterparts who are more qualified or with higher education than them. The university completion rate of the visible minorities is higher than that of the whites, so they tend to be more educated than whites.

In conclusion, findings on patterns of wage gaps for minority groups are instrumental in structuring policy efforts and future research to deal with the underlying problems in the labor market experienced by visible minorities. The impact of equity employment policies should be isolated from the institutional environment and the identification of discrimination forms and other potentially responsible factors for pay gaps between the whites and the visible minorities.





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