Ethnic penalty is when a person of color (someone who is not white) doesn't get picked for something that they are good at, even though a white person may not be as good. This means someone of color could have the same experience and qualifications as a white person but still not get chosen for a job, school, or other opportunity. This can happen because of bias, or judgment based on a person’s race. People of color don't always get fair chances, and the ethnic penalty is something that makes this unfairness even worse.