'Whites paid more because of education'

Economist Mike Schussler says whites get paid more because of their education.

Recent research by the SA Institute of Race Relations found “glaring racial inequalities” between the earnings of black and white workers. Picture: EWN.

CAPE TOWN - Chief Economist at economists.co.za Mike Schussler says whites get paid more than blacks because of their education.

A recent research report by the SA Institute of Race Relations found "glaring racial inequalities" between the earnings of black and white workers.

It revealed that the average individual monthly earnings of white people is four times higher than that of black people.

The report also showed the level of relative poverty for black Africans sits at 42 percent while for whites it is just one percent.

Schussler told 567 CapeTalk that several factors contribute to these findings.

"At 21, many people haven't found a job and that's a trend worldwide. But if you are in a job you are probably going to be paid 50 to a 100 percent more by the age of 38. We all go up in life as we gain experience."

Schussler says whites have the upper hand because they are educated.

"Secondly, 77 percent of white folk have a matric or more, but only 35 percent of black folk have a matric or more. So you have twice the amount of people that have a matric or tertiary education as a percentage of the white population than as a percentage of the black population. Ultimately that brings us to the point where there are educational reasons why whites would also be paid more."

Schussler says minorities also typically study things such as law and accounting which result in better pay.