Overt is open discrimination - treating people differently and unfairly because of colour, race, disability etc in an open and obvious way. Not giving a job to someone because of their ethnicity etc or acting on the basis of stereotypical views, name-calling or abuse.
Covert discrimination is more hidden - it relates to the assumptions, beliefs and values acquired over a long period of time, which affects people's instinctive responses. It may be shown in the attitudes of teachers, parents and other adults towards children and in the attitudes of children towards themselves and each other. Covert discrimination is harder to detect - subtle things like saying potential employees must have excellent english may exclude qualified people from other countries/races.
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