Introduction Though a lot of effort has been dedicated in ensuring that discrimination along any ideology is eliminated, discrimination is still perpetrated in various sectors of the economy. Studies show that in the American labor market, equality is yet to be achieved. Minority groups still account for a very small percentage of people employed. The majority of the unemployed people come from the minority ethnic groups including the African-Americans, the Spaniards and the Latinos (Royster 37). This kind of discrimination has been there since time immemorial and is expressed in different forms including wage difference, and allocation of employment opportunities. As a result, there are two schools of thought, the market oriented perspective and the embedded perspective, which try to explain the racial discrimination in the labor market. Though these two schools of thought have great differences, they concur on some explanations. Market Oriented Approach The market oriented approach argues that the disparities in the labor market are normal results of the forces of demand and supply. According to this approach, the market has ways of balancing itself and these will always cause disparities (Waldinger and Michael 85). The minorities lack the required experience and expertise to carry out some duties thus, compelling employers to look for the best alternative. It should be noted that each employer is out to maximize the returns from each unit of input and will, therefore, employ only the best suited inputs including human capital. In addition, it is argued that people from the minority races are few in number. Therefore, it is quite natural that they will be statistically few in various sections of the labor market. Instead of the minorities complaining about being unable to get certain employment opportunities or earn a specific salary, they should react to information from the market. Consequently, they should invest and train in professions where salaries are high because these professions are highly valued (Vallas, William and Amy 210). On the same note, they should advance their education standards so that they can compete favorably with the others. Notably, the market oriented perspective is against any artificial interference in the name of balancing the labor market, arguing that this will cause inefficiency. As long as, the minorities are not ready to embrace the reality in the labor market, the elite class will continue to control resources thus leading to further discrimination (Waldinger and Michael 218). The Embedded Approach On the other hand, the social embedded perspective argues that discrimination in today’s labor market stems from traditions that have been passed down through generations. The cultural values that are passed to each generation come with vested interests, which sometimes surpass the individual feeling that one may have towards a given ethnic group or race. According to this perspective, the decline of social ties among people has paved way to social conflicts with the economically strong white group wanting to control the industrial economy (Royster 106). As a result, racial discrimination has emerged, though in a different form from what p