The Economics of Discrimination

The economics of discrimination refers to how biased behavior affects markets and individual economic outcomes. When certain groups face discrimination, they often have limited access to jobs, education, or services, which reduces their economic productivity and overall earnings. This not only harms those individuals but also leads to inefficiencies in the economy, as potential talent remains untapped. Discrimination can manifest in wage gaps, unequal hiring practices, and biased lending. Understanding this helps illustrate that promoting equality can benefit the economy as a whole by maximizing the potential of all its participants.