Economic discrimination is bias or discrimination based on economic factors, affecting workers, consumers, and businesses. It can occur in various contexts and is different from price discrimination. Laws exist to minimize it, but cases still occur and must be reported to government authorities.
Economic discrimination is a term that is used to describe the occurrence of some sort of bias or discrimination based on economic factors. This type of bias can be based on a wide range of demographics that seek to marginalize certain groups within the economy, including select groups of workers, consumers, or even specific types of businesses. The concept of economic discrimination was first addressed in the UK during the mid-19th century and is often cited as part of the basis of laws preventing the issuing of charges or the offering of wages based on holder bias of the activity.
While price discrimination is often closely linked to economic discrimination, the two terms refer to two different scenarios. With price discrimination, monopolies charge different buyers different prices for the same goods and services, based on their willingness to pay. Conversely, economic discrimination is not about willingness to pay, but about the attributes of who is actually making the purchase.
Economic discrimination may occur in different contexts. For workers, this form of bias can be based on factors such as gender, sexual orientation, religious preference, ethnicity or even age. In this situation, some workers may be offered higher wages because they lack certain attributes that the employer considers undesirable. For example, a worker who is a member of a religion that is not well known in the area, is over a certain age and comes from a particular ethnic background, may be offered lower wages than those offered to someone who was a member of the religion fair, under a certain age, and from what the owner considered a more desirable ethnic background. This would be true even if the two people possess the same level of skills and require the same position within the company.
Another manifestation of economic description is aimed at consumers in general. Here, a retailer can offer products to consumers, basing the extended price on factors such as the neighborhood where the outlet is located. For example, if a retail chain operates a store in an area primarily frequented by minorities, the retailer may actually charge higher prices for the same products sold in other stores located in more desirable areas. An insurance company may also rate higher rates based on factors of race, age, or gender. In these examples, consumers who fall outside the relatively narrow view of what the firm considers the ideal customer are highly likely to pay considerably higher costs than those consumers the firm wishes to attract.
Businesses can also be victims of economic discrimination. In this scenario, the business owner’s gender, race, and religious preferences may be a factor in the type of prices the business pays. This means that a business owner who is a member of a minority race and religion in the area, and is not the typical gender for owners of that type of business, may pay more for the same business services offered to owners who are considered more desirable in terms of gender, religion and race.
In some nations around the world, there are laws that help minimize the amount of economic discrimination that occurs. Even within countries with regulations against this type of economic activity, cases still occur, although they may be more difficult to prove. When an instance of economic discrimination is identified, it must be reported immediately to government authorities. In some cases, current laws may also provide the basis for victims of discrimination to file civil actions as a way to obtain redress for discriminatory practices related to the incident.
Protect your devices with Threat Protection by NordVPN
