Racial Equity or Racial Equality

This study examines the relationship between racial equity in labor market processes and racial equality in future labor market rewards. In particular, a regression standardization procedure is used to project the degree of racial inequality in earnings that would exist among men at various future points in time based on three different sets of assumptions about attainment processes in labor market and educational institutions. The most important results suggest that even if racial discrimination were eliminated immediately in labor market and educational institutions, it would take almost 50 years for the black-white earnings ratio to reach .95. This incompatibility between equity and equality needs to be considered more explicitly both by those who advocate a color-blind labor market and those who advocate preferential treatment for blacks.