D. Eric Schansberg

In the following viewpoint, D. Eric Schansberg argues that while discrimination does occur in the labor market, it does not lead to poverty. Schansberg allows that two types of discrimination—personal and statistical—affect labor decisions. However, he maintains, an absence of discrimination does not ensure economic well-being, nor does its presence lead to poverty. Schansberg is an assistant professor of economics at Indiana University-Southeast and the author of Poor Policy: How Government Harms the Poor, from which the following viewpoint is excerpted.

As you read, consider the following questions:

1. According to Schansberg, how does government policy encourage discrimination?
2. What type of statistical discrimination is used by firms, in the author's view?
3. According to the author, how have Korean immigrants overcome discrimination"

The most popular topic concerning income differentials between groups is discrimination. With a...