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Money News: Prejudice Causes Black Workers $115,000 in Wages

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A recent study in the Journal of Political Economy proposes that racial prejudice accounts for one-quarter of the difference in how Blacks and Whites are paid. The rest of the gap can be accounted for in educational inequality, differences in workers' skill levels and other forms of discrimination. Shockingly, the study found that prejudice costs the average Black worker up to $115,000 over a lifetime depending upon location.

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