Question

Explain why incarceration rates must be taken into account in order to understand labor market inequality. Support your answer by identifying and describing two specific ways in which incarceration impacts the wage gap between black and white men?

Answer 1

Yes, it is true that incarceration rates must be taken into account with respect to labor market inequality. This is because a citizen who has incarceration records are likely seen to be denied job opportunities and hence would face unemployment. They may be highly talented but do not get hired by companies due to access of companies towards their prison lockup history. The opportunity for education also gets denied to such people which indirectly makes them disqualified to apply for many good vacant positions in different companies thereby creating labor inequality.

The two concepts which help in explaining the incarceration impact on the wage gap between black and white are as follows

• Black men who had incarcerated history have a wage that is 22% less than white men with a similar background.
• One in 3 black is found to experience incarceration which leads them to have a lack of access to education and decreased chances of employment or experience in work. This also leads to a comparatively lower wage applicable to blacks due to incarceration hindering their education and job experience.