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Affirmative Action in the Labor Market

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  • DAVE M. O'NEILL
  • JUNE O'NEILL

Abstract

One of the most controversial tools of federal antidiscrimination policy in the employment area is the affirmative action program conducted by the Office of Federal Contract Compliance Programs (OFCCP). The OFCCP requires firms holding federal government contracts to set numerical hiring goals for minorities and women. Firms that fail to meet their targets face the threat of contract cancellation. The setting of hiring goals requires estimation of available pools of qualified minorities and women, which in practice cannot be done with any precision. Studies show no clear positive link between gains in minority earnings and the affirmative action efforts of the OFCCP. Current earnings differentials between blacks and whites appear to be more closely tied to differences in work-related skills than to labor market discrimination. The growing premium on skill in our economy underscores the need for improvement in the schooling of blacks and other minorities suffering educational deficiencies.

Suggested Citation

  • Dave M. O'Neill & June O'Neill, 1992. "Affirmative Action in the Labor Market," The ANNALS of the American Academy of Political and Social Science, , vol. 523(1), pages 88-103, September.
    • Handle: RePEc:sae:anname:v:523:y:1992:i:1:p:88-103
    DOI: 10.1177/0002716292523001009
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