ABSTRACT
Is discrimination an issue appropriate for discussions of full employment? Discrimination is a microeconomic issue, one might answer, an issue addressed by evaluating differences in human capital, differences in "soft skills," or in the hiring and promoting practices of employers. These are not macroeconomic issues, and gender and race differences in the labor market do not hinder us from thinking about a full-employment economy. I will argue here, however, that to ignore discrimination is to be blind to the true difficulties in reaching a full-employment economy. Discussions of full-employment policy often overlook the fact that discrimination, primarily racial discrimination, is a major impediment to full employment in the United States.
