Many educational and employment problems of racial minorities, women, older adults, and the handicapped are associated with equity, discrimination, and equality. In economics, the concept of equity and its relevance to employment and education can best be understood through an analysis of two labor market theories. The theory of human capital sees the solution to problems of inequity and inequality in the realms of education; the dual market theory sees the solution in integration of secondary workers into the primary market. Discrimination in the labor market has made it difficult for minority groups to achieve economic equity in terms of employment and income. Future underutilization of the human resource potential for minorities may worsen the distribution of income. Since the 1960s educational programs have been designed to assist minorities in achieving economic equity and employability. Vocational education has been especially responsive and has increased their earnings and employability. Because of increasing minority demand for vocational education, equity considerations in vocational education will become of major significance to their economic progress and can be instrumental in improving economic equity and the distribution of income. (YLB)