African American Unemployment
As a matter of fact, the unemployment rates continued to increase during the economic recovery despite the fact the unemployment rates among the whites continued to decline. The first few years of economic recovery saw African Americans securing themselves jobs. However, this stopped after few past months. It is an undisputable fact that African Americans still face a depression like unemployment levels. There are exists some structural obstacles that prevent African Americans to fully enjoy the benefits that come with both economical and labor growth. Additionally, the black, white gap is much wider today compared to 1979. Wage and employment have continued to increase due to the discrimination and growing inequality overall in the national economy. According to (Wilson and Rodgers, 2016) discrimination has greatly contributed greatly to the widening of the gap between the blacks and the whites especially for the male workforce entering the workforce through the year 2015 while the national inequality contributes to 29% of the widening gap between the black and whites.
According to Andrew Wells notes that discrimination is a major factor contributing to the unemployment rates (Elejadre-ruiz, 2016). Unemployment is more prevalent in the united states especially in the United States of America. Statement of the problem By the year 2011, the black unemployment rate stood at 16. 1% compared to 7. 9% for whites during the same period. The unemployment rate two years to full economy recovery was more than twice higher as compared to the whites. The gap between the black and white's unemployment rates continues to widen up. Two factors attribute this. First, since the year 2007, the American employment has rebounded less compared to that of the white employment. The second factor is that resilience factor (Dosi at el. This helps to maintain the unemployment rate at a high level.
In comparison between African American men and women, men had a higher unemployment rate as compared to their women counterparts. According to the theory, labor markets are segregated in some way. The mostly adopted labor market segregation is the dual labor market. According to this theory, the labor market for into the primary and secondary market (Alt, & Iversen, 2017). Other theories that fall under labor market segregation divide the labor market into static and progressive, and formal and informal. In the primary labor market, jobs found there are of good stature, and the participants in this segment enjoy high wages. This explains it is possible to find certain individuals in certain occupation and despite the fact their others who are more educated and they are jobless.
Regarding primary and secondary markets In most cases, only those cannot get gainful employment in the primary market go-ahead to seek employment in the primary market. This because at times race discrimination which not sometimes related to the employer, but by the unions and the professional bodies. Most of the African Americans cannot get gainful employment in the primary market and therefore they are crowded into the secondary markets where the conditions are not favorable. They therefore instead of working under harsh conditions they decide not work, and hence this explains why African American workers continue to jobless despite the fact of qualifying in the primary market. Keynesian and neo-Keynesian model Keynes conceptualization greatly differs with earlier economists and neo economists.
His colleagues’ argued that unemployment was brought about by the inflexibility of wages (Lavoie, 2014). However, for Keynesian he was not concerned with unemployment that is normally caused by equilibrium failing hold in the interaction of forces of labor and supply or the factuality that the workers are not willing to underbid those who have already secured jobs rather Keynes was concerned with what would happen to the unemployment rate when aggregate demand is increased without taking into consideration what happens to the wages. In explaining the reason behind unemployment rate among the African America, Keynesian argues and stresses on the relationship that exists between employment and wages. For the neo, economists argue that there exists a class of people the blacks who are willing and actively looking for jobs but cannot secure jobs because of the wage inflexibility.
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