Overt discrimination

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Overt discrimination
See also

Overt discrimination includes visible acts of unequal and harmful treatment that may or may not be intentional[1], it is the use of gender as well as on race/ethnicity, national origin and religion in employment-related matters such as hiring, firing, and promotions[2]. Becker G. as the reasons for discrimination adds: social class, personality, or other non-pecuniary considerations[3]. Beyond discrimination in hiring attention is paid to discrimination in testing, training[4].

Types of discrimination

Discrimination is generally categorized into two types [5]:

  • Overt discrimination
  • Direct discrimination

In the lending context, discrimination may consist of either refusing to transact or varying the terms of the transaction. Discrimination is generally categorized into three types[6]:

  • overt discrimination
  • disparate treatment
  • disparate, or adverse, impact.

An example of lending "overt discrimination occurs when a lender openly discriminates based on a prohibited factor. Disparate treatment occurs when lenders treat applicants differently based on a prohibited factor. Adverse impact occurs when a business practice is applied uniformly, but has a disparate" (Fortowsky E., LaCour-Littl, M., & Mortgage W. F. H., 2001, s.6)

Modern discrimination

"In some countries overt discrimination is still prevalent and extent of overt discrimination varies form condition to condition. In countires offering greater legal protection, overt discrimination may be reduced, but it gives way to more subtle forms discrimination, which can be at leat as damaging as overt discrimination."(Colella A., King E., (2018), s.123)

Legal aspect

"Race and sex discrimination in employment, covering recruitment, pay and compensation, training and promotion, was made illegal by Title VII of the Civil Rights Act of 1964. Successful employment discrimination lawsuits may result in individual relief, such as monetary compensation for individual victims of discrimination and injunctive relief, such as changes to the employer’s human resource management policies and practices aimed at creating a workplace free of discrimination for all workers. Very few employment discrimination lawsuits, however, actually result in injunctive relief. Those that include injunctive relief most commonly are court-supervised pre-trial settlements called consent decrees."(Hegewisch, A., Deitch, C. H., & Murphy, E. F., 2011, s.2)



  1. Snyder, L. A., Carmichael, J. S., Blackwell, L. V., Cleveland, J. N., & Thornton, G. C., (2010)
  2. Bell, M. P., McLaughlin, M. E., & Sequeira, J. M.,(2002), s.66
  3. Becker G.,(1971), s.153
  4. Colella A., King E., (2018), s.123
  5. Congleton R. D., Hillman A. L., (2015), s. 133
  6. Fortowsky E., LaCour-Littl, M., & Mortgage W. F. H.,(2001), s.6

Author: Katarzyna Kraj