3.6.7 Discrimination in the labour market

• Discrimination in the labour market refers to the unfair treatment of individuals based on characteristics unrelated to their job performance.
• Direct discrimination involves treating someone less favorably due to a protected characteristic.
• Match the type of discrimination with its description:

  Direct Discrimination ↔️ Treating someone less favorably due to a protected characteristic

  Indirect Discrimination ↔️ Applying a policy that disadvantages a protected characteristic

  Institutional Discrimination ↔️ Discrimination embedded in an organization's culture
• Discrimination in the labour market leads to inefficient allocation of resources.
• Discriminatory practices exacerbate income inequality in the labour market.
• Direct discrimination occurs when someone is treated less favorably due to a protected characteristic
• What is institutional discrimination embedded in?

  Organization's policies and culture
• Match the cause of discrimination with its description:

  Prejudice ↔️ Bias and negative attitudes

  Stereotypes ↔️ Overgeneralized beliefs

  Lack of Awareness ↔️ Insufficient understanding of impact
• Discrimination leads to inefficient allocation of resources and market failure.


  True
• What is exacerbated by discriminatory wage practices?

  Income inequality
• Diversity and inclusion initiatives aim to foster inclusive workplace cultures.


  True
• What does pay transparency require employers to disclose?

  Salary information
• How does legislation address institutional discrimination?

  By mandating policy reviews
• Match the type of discrimination with its description:

  Direct Discrimination ↔️ Unfavorable treatment due to a protected characteristic

  Indirect Discrimination ↔️ Neutral policy that disadvantages protected groups

  Institutional Discrimination ↔️ Embedded in organizational culture
• Discrimination leads to market failure and deadweight loss for the economy.

  True
• Discrimination in the labor market leads to the underutilization of human capital.


  True
• What are four policies aimed at reducing discrimination in the labor market?

  Anti-discrimination legislation, diversity and inclusion initiatives, affirmative action, pay transparency
• Diversity and inclusion initiatives aim to foster inclusive workplace cultures
• Match the type of discrimination with how legislation helps to address it:

  Direct Discrimination ↔️ Anti-discrimination laws outlaw unfavorable treatment

  Indirect Discrimination ↔️ Legislation prohibits discriminatory policies

  Institutional Discrimination ↔️ Laws mandate policy and culture reviews
• AI-powered hiring systems may inadvertently discriminate if the training data reflects societal biases
• What should organizations prioritize when implementing new technologies in the workplace to avoid discrimination?

  Ethical design and inclusive implementation
• What is one long-term effect of discrimination on labour markets as described in the study material?

  Reduced productivity
• Discrimination in the labour market leads to the efficient allocation of resources.

  False
• Requiring all employees to work overtime disproportionately impacts workers with family responsibilities
• Match the type of discrimination with its description:

  Direct Discrimination ↔️ Treating someone less favorably

  Indirect Discrimination ↔️ Applying a policy that disadvantages

  Institutional Discrimination ↔️ Discrimination embedded in culture
• Discrimination in the labour market can lead to equal access to employment opportunities.

  False
• Indirect discrimination involves applying a policy that intentionally targets a protected characteristic.

  False
• Order the causes of discrimination in the labour market:

  1️⃣ Prejudice

  2️⃣ Stereotypes

  3️⃣ Lack of Awareness
• Discrimination reduces overall economic productivity by underutilizing human capital.


  True
• Bias and negative attitudes towards certain groups of people lead to prejudice in the labour market.
• Indirect discrimination involves applying a policy that appears neutral but disadvantages people with protected characteristics


  True
• Unequal access to employment opportunities and lower wages are consequences of discrimination
• What is a key cause of discrimination in the labour market?

  Prejudice
• What is one economic consequence of discrimination in the labour market?

  Wage inequality
• Discrimination underutilizes human capital, reducing overall economic productivity
• What is a policy aimed at reducing discrimination in the labour market?

  Anti-discrimination legislation
• Affirmative action encourages the recruitment and promotion of underrepresented groups
• Anti-discrimination legislation can prohibit policies that appear neutral but disadvantage protected groups.


  True
• A comprehensive approach to reducing discrimination combines legislation, regulation, and organizational change
• What is a key stereotype that influences hiring decisions?

  Overgeneralized beliefs