Econ 113 Study questions_conceptual

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FEMINIST ECONOMICS 1) Define gender ideology and gender norms. Gender ideology is a system of thoughts and beliefs that legitimizes gender roles, statuses, and behaviors. Examples of this include foot binding, honor killings, occupational segregation. Gender norms split the world into female and male realms where the male realm has the higher value. It prescribes what is the appropriate behavior based on gender. 2) How is globalization defined? Globalization is the integration of all spheres cultural, political, economic, etc. 3) Describe the key features of social provisioning. The key features of social provisioning are: - Interdependence or social embeddedness of economic processes. All the economic activities occur in a social and institutional context - Human society is organized by both market and non-market activities - Draws attention towards sustenance, cooporation, and support - Social provisioning emphasizes the importance of social norms in affecting both the processes and the outcomes of economic processes. 4) What does it mean to say that human agency is important? Recognition of power differences. Having the right to speak up and make a difference or impact in the way the world works. 5) Why is the autonomy assumption problematic for feminist economists? Denies human connectedness such as empathy, altruism, and benevolence in Adam Smith. Agents require both autonomy and connectedness 6) What is the problem with the assumption that levels of utility cannot be compared across individuals? We can’t compare which of the two persons or groups gain the most from a given interaction. We cannot analyze redistribution policies, and it also goes against pareto optimality. 7) What is a soluble self? A soluble self is characterize by connectedness, altruism, and emotion

8) What is wrong with assuming that individuals make rational decisions? Experimental economics demonstrate that humans often do not behave rationally. People make heuristic decisions, and they lead to cognitive biases preventing people from making rational decisions. A broader conceptualization would be based on reasonableness (Adam Smith). It would incorporate the role of emotions (Keynes – animal spirits) 9) What is the critique of neo-classical methods by feminist economists? Mathematical, and statistical methods are used These methods are assumed to presume “objectivity” Feminist view that use of formal tools on their own would not being objectivity. 10) Why is neutrality in science not possible? Theories are value, interest, and culture laden. 11) What is wrong with the idea that methods make science neutral (objective)? Method is supposed to operationalize neutrality and this achieve objectivist standards. However, it comes into play after a problem is identified as a scientific one, a hypothesis and a research design have already been selected Culture-wide assumptions shape the design of the research and therefore the methods, and what counts as important research INEQUALITIES 1) What is gender inequality? Power Difference 2) Why concern with gender inequality? Intrinsic: morally right Instrumental: fosters child survival, etc. 3) What are the costs of inequality? Short Term: lower current levels of productivity Next Generation Lack of/limited agency of women  undermines imporvements in institutions, policy choices

4) What are the known factors that explain the gender wage gap? Race/Ethnicity Union Occupation Industry Labor Force Experience Education is a mitigating factor 5) What are the factors that lead to gender gap in wealth? Wage disparities Job Segregation Caregiving Burdens Lower Levels of Financial Knowledge Mortgage Women Owned Businesses Disadvantages of lower income women: not benefitting from saving and tax incentives, being trapped in a cycle of debt 6) Sen’s 7 Inequalities Professional Natality Mortality Basic facility Asset Special opportunity Household work 7) Why does UNICEF, an organization that advocates for children, monitor women’s rights? The intergenerational dividends of gender inequality Gender equality is essential to creating a world of peace, equity, tolerance, security, freedom and shared responsibility, which are essential for children

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8) According to the World Bank, what would gender inequality enhance? Productivity Gains Improved outcomes for the next generation: greater control over household resources by women can enhance countries’ growth prospects by changing spending patterns in ways that benefit children Improvements in women’s own education and health also have positive impacts on children’s health and education, as well as bringing additional benefits 9) How is agency defined? Agency is about one’s ability to make choices – and to transform them into desired actions and outcomes 10) State what each of the following indices focus on: Gender Development Index, Gender inequality index, global gender gap index, social institutions and gender indec, gender empowerment index. Gender Development Index focuses on health education and income Gender inequality index focuses on health, political participation, and labor force participation Global gender gap index focuses on economic participation and opportunity, education attainment, health, and political empowerment Social institutions and gender index focuses on things such as ownership, marriage patterns Gender empowerment index focuses on political participation and income 11) In order to assess whether there is a convergence of historical gender inequality index amongst countries the following question is estimated: a. What does this means statistically? T stat: 0.272/0.064 = 4.25 Because it is greater than 2, the result is estimated statistically significant b. What is the interpretation of this finding in terms of HGEI Once institutional and cultural variables are controlled for, conditional convergence is found HOUSEHOLD 1.) What are the assumptions of the neoclassical division of the model?

Members make informed and rational decisions to maximize the economic well- being of the family, maximizing the utility function that represents the whole family. Economic well-being is maximized by selecting a combination of commodities The commodities available can be produced at home or purchased in the amrkets by using the time spent in doing market work Family members have given preferences, and perferences are the same for the members (i.e.) there is only one utility function, the family utility function to be maximized). This eliminates all potential conflict or power differences in the family Individuals in the family may be relatively better at producing either the house good or producing to purchase market goods. This is given. 2.) What determines the DOL? Comparative Advantage 3.) What is an important limitation of this model? There is no learning to change comparative advantage 4.) In bargaining, what is symmetry? Equal bargaining power 5.) Without deriving the equations, write down the solution to the bargaining problem with symmetric bargaining power and explain it intuitively. For women: ½ (1-Vm-Vw) + Vw For men: ½ (1-Vm-Vw) + Vm Intution: the amount being bargained over is (1-Vm-Vw). They are sharing 1 unit, which will be divided equally because they have the same bargaining power of ½. Eah will have to get their fallback position no matter what. 6.) What determines that outcome when there is symmetry? Fallback position. 7.) When there is no symmetry, what determines the outcome? Bargaining power and fallback position. 8.) What are Sen’s criticisms of the Nash bargaining assumptions? Explain.

Well defined objective utility functions – well-being. Capabilities approach may be more helpful and informative Individuals have clean and unambiguous perception of their interests. According to Sen, women, especially in developing countries have limited perception of their well-being since they view themselves as part of the family unit and their care for others leaves little room for having an independent sense of their own interests, needs, and well-being. Perceived productvie contribution of each member to the family is left out. Women’s perceptions of their own contributions to the household might be less visible to themselves and to tohers around them compared to wage labor. 9.) What are the feminist criticisms of Sen’s approach? Agarwal (1997): factor affecting women’s bargaining position go beyond the household to include norms market institutions community Women lacking self-interest (not perceiving their self interest) is criticized Critics argues that paid work is important but may not be sufficient to give women a greater say in the household Participation of women in paid work does not necessarily ensure higher survival chances of women The notion of the capitalist workplace as free of patriarchal relations with Sen’s emphasis on gainful work outside the household has been challenged. The trend in India’s sex ratio at birth also challenges Sen’s argument in favor of women’s education as a tool for strengthening women’s agency and bargaining power within the household UNPAID WORK 1.) What are the sectors where women do more of the unpaid work? Explain. Subsistence Production: It includes activities such as cultivation of backyard vegetables, forestry, and fishing. These are marketable goods that are not exchanged in the markets Informal labor: it includes activities ranging from underground production of goods and services, to street vendors. Ranges from self-employment to contributing family workers in small registered or unregistered enterprises. Household Work: “reproductive work”, reproducing present and future work force. “care work”: set of activities and relations involved in meeting the physical and emotional requirements of dependents and children Volunteer Work

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2.) Why count? Unpaid care important contributer to building capabilities and promoting wellbeing over time Creates disadvantages (costs) for caregiver-depletion of human capital Need to measure if to make the case for policy to reconcile pai dan dunpaid work (value it) Crucial for engendering macroeconomic policies and budgets Enables us to understand shortfalls of well-being due to time poverty or intensification of work Improve labor force statistics GNP statistics 3.) What are the ways in which unpaid work has been measured so far? Specialized, Globalized, Opportunity Cost 4.) What are the objections to the accounting project? Explain each. Theoretical: - Women regard their work as activities of love - Any imputation of monetary value is not consistent with modern economics- price is established in markets A Waste of Time: - There are methodological and practical problems - Fear that once measured the results might not improve women’s lives-glorify the housewife Care Work is Qualitatively Different: - It might not be the best way to appreciate women’s work - Imputing monetary value opens up caregiving to the norms of the markets - Quality of care given by different people might be different - Marketization (self-interest, individualism) not compatible with care-work (generous, emotional) 5.) Explain Global substitution method. Hire one servant to do all tasks. Use her pay rate and multiply the hours of unapid work with pay rate of respective tasks. 6.) In the article unfolding patterns, it is found that men do less unpaid work then women after controlling for other variables, what is the interpretation of this?

Structural, institutional, and cultural factors are behind the gender gap 7.) There are two approaches to how women’s participation in the labor force affect violence against her. What are they and what are the hypotheses of each? Intrahousehold Bargaining Model: Having work economically empowers women an dshifts their threat points to tolerate less violence because they have less ened for financial support. Thus, having paid employment would decrease violence against women. Male Backlash Model: Men respond to women’s economic empowerment because they see it as a threat to their power and masculinity. Thus, paid employment would increase violence against women. SAPs 1) What are the effects of devaluation on women? Increases employment opportunities Increasing the burden of unpaid work of women 2) What are the effects of emphasize on exportable on women? Increases employment opportunities Lead to women seeking paid employment 3) What are the effects of cuts in government spending on women? Burden of unpaid work increases Decrease in jobs 4) What are the effects of privatization on women? Privatization may lead to prices increases (of commodities previously subsidized by the government or produced by government enterprises). May limit access to health and education services. This is likely to increase unpaid work. FEMINIZATION 1) How is feminization defined? Transformation of jobs to become associated with jobs that are typically held by women (precarious work conditions: presence of insecure contracts with few benefits, long hours, undermined organizing for worker rights) Men could find themselves in feminized positions.

Increased share of women in the labor force (this could happen when women’s employment is rising more rapidly, or men’s employment is falling) 2) What is labor market flexibility? A flexible labor market is one where firms are under fewer regulations regarding the labor force and can therefore set wages, fire employees at will and change their work hours 3) What are the reasons for the reversal of feminization in Taiwan? Moved towards capital intensive manufacturing exports from labor intensive exports since the 1970s. From 1981 to 1993 exports grew at an average annual rate of 12.3%. Smaller firms that were losing international competitiveness increased overseas investment since mid-1980s relocating labor-intensive industrial production out of Taiwan. 4) Why do we observe a U shape curve of labor market participation of women? Men’s privileged access to new technologies and education leads then to have higher productivity leading to a decline in women’s share in the labor force In agricultural sectors growing productivity differences lead women to withdraw from the labor force. In urban areas, employers would prefer men with higher productivities, and it wold be more difficult for women to combine productive and reproductive activities in urban areas. With further industrialization, more education of women, falling fertility rates would lead to an increase in women’s labor force participation, increasing share of women in the labor force. 5) What are EPZs? EPZs, established as a structure to attract foreign capital to produce for export, EPZs operate in subcontracting networks 6) What is a discourse and what function it serves in the jewelry industry in India? Discourse is defined as a domain of languqgee used that is unified by common assumption Discourses include social practices and forms of subjectivity and power relations The discourses feed into the discursive practices and are also shaped by them How discourse shapes women’s exclusion from jewelry production

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7) What are the theoretical links between internation trade and feminization? Neoclassical explantation: comparative advantage (Hecksher-Ohlin). Less skill workers are abundant, and women are less skilled Heterodox Explanation: Absolute advantage – firms compete for export market share on the basis of unit costs and prefer women because of their wages being low 8) We know that women are preferred for labor-intensive work but also that they lose out when production becomes more capital intensive. Why is this surprising? Women have rapidly closed the education gap at the primary, secondary, and tertiary levels 9) Defiminization may take place for reasons related to the causes that led to preference for women’s labor in the first place, what are these reasons? First, as labor costs make up a smaller proportion of total cost in capital-intensive production, the incentive to hire relatively cheaper women’s labor might disappear Second, gender norms designate heavy or technologically sophisticated work as “masculine” and thus preclude hiring women for such work Third, women lack access to on the job training that allows them to build new skills Fourth, as women egin to organize for better pay and working conditions, they become a less attractive workforce for employers WORKING CONDITIONS 1) What is outsourcing and what is its goal? Outsourcing is shifting tasks, operation, jobs, or processes to an external contracted third party for a significant period of time Production is divided and value added is through production across different locations Goal: to reduce cost and have access to larger markets 2) What is the reason behind the growth of the garment sector in Bangladesh?\ Low wages and high gender wage gap 3) What rationale institutional economists gave for the imposition of labor standards? Institutionalist economists: impose labor standards (social clause of ILO): include prohibition of child labor, forced labor, and discrimination, union rights

Economic rationale: increasing compliance with labor standards – improved labor productivity, greater political stability 4) What are the mainstream challenges to labor standards? Labor market regulation will lead to job losses Raising wages will lead to a slowdown of employment growth Tapping into country’s comparative advantage. This would mean with few labor regulations to capitalize on low-wage labor and fuel long term growth. 5) Suppose you are told that the garment exports workers in local factories earn more than “other wageworkers”, who are not in EPZs. What are the caveats? Higher earnings of garment workers relative to toher wwage workers is due to extremely long hours of garment workers Significant gender wage gap: 48-85%, and women’s wages are more likely to fall below minimum wage Long hours are not a choice, but due to necessities Delayed payment of monthly earnings 6) It is argued that garment jobs pay better that poverty level income which can provide a path out of poverty. What is the problem with this argument? Studies indicate that wages wpaid there were 14% lower than living wages 7) Is offshoring bad for the US? What is the impact on employment? Fears of job losses tend to overplay the likely impact of offshoring. 70% of the economy is composed of the type of services that can’t be offshored WAGES 1) Explain what the Hecksher Ohlin theory predicts in terms of the relation between wages and exporting. Hecksher Ohlin Theory: Mainstream trade theory Countries export goods that are intensive in the factor of production that is relatively abundant in a country Export increases should lead to a reallocation of factors of production to the sectors that intensively use the relatively abundant factor of production. Suppose Mexico is abundant in unskilled labor, not skilled labor, and it produces garments that use unskilled labor intensively. If Mexico trades, it will export garments. When there is an increase of exports of garments, the relative demand for unskilled workers will increase, increasing their wages.

Assuming majority of women are unskilled expect their wages to increase Men are in skilled jobs, demand for them might decrease because resources are reallocated to the unskilled worker intensive sector which is garment production. Gender gap would be narrowed 2) How would increasing international competitiveness with trade affect wages? There is a positive relation between market power and discriminiation Because discrimination is costly in the sense that discriminating emplowers forego prodits in order to idulge their “taste for discrimination”, exployers with market power will be able to practice discrimination to a greater extent than employers with market power will be able to practice discrimination to a greater extent thanemplyers with little market power. If women were the ones discriminated against, elimination of discrimination would increase their wages, gender wage gap would narrow. 3) What do plots of gender wage gap and trade, and wage gap and FDI indicate? Gender gap narrowed 4) A study of trade and wages uses firm level data over time. Male, female, and the ratio of male/female wages are estimated as a function of several variabels including exports/output ratio. Explain what the results below show statistically and what they mean economically. All the variables estimated are statistically significant because the t-statistic is greater than 2 maintaining international competitiveness hypothesis is supported. Women lose more than men. It is argued that export booms increase forms of exploitation and subordination of women 5) Taiwan moved towards capital intensive manufacturing exports from labor intensive exports. Small firms relocated labor intensive manufacture production out of Taiwan. How would you expect these changes to affect women’s rights? Because women are more heavily employed in unskilled worker intensive sectors, demand for them decreases leading to a decrease in their wages. 6) Has export oriented production in maquiladoras affected women’s wages? Why? No. They are employing women who are disadvantaged in the local labor market by their age, education, and family status 7) In China, the foreign direct investment coming from abroad moved towards high productivity industries. How would this affect the wages of women?

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Women typically are aggregated to low productivity sectors. The shift would lower the demand women workers and their wages would decline. 8) Exports were estimated as a function of female to male ratio and other relevant variables for South Korea. The coefficient estimate is -1.84 and the stanard error is 0.8. How o you interpret this result statistically? What does that mean? The absolute value of the t-statistic is greater than 2 meaning that the result is statistically significant. It means that women’s lower wages relative to men provided an important source of export growth.

Econ 113 Study questions_conceptual

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