Exam IRE339H1F 2021

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University of Toronto *

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339

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Economics

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Feb 20, 2024

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LAST (Family) NAME: _____________________________________ FIRST (Given) NAME: ______________________________________ STUDENT NUMBER: _______________________________________ UNIVERSITY OF TORONTO Faculty of Arts & Science DECEMBER 2021 EXAMINATIONS IRE339H1F, L0101 Labour Markets and Public Policy RESTRICTED Duration: 2 hours Aids Allowed: None Exam Reminders: Fill out your name and student number on the top of this page. Ensure you fill in your name and student number on the exam booklet(s). Do not begin writing the actual exam until the announcements have ended and the Exam Facilitator has started the exam. As a student, you help create a fair and inclusive writing environment. If you possess an unauthorized aid during an exam, you may be charged with an academic offence. Turn off and place all cell phones, smart watches, electronic devices, and unauthorized study materials in your bag under your desk. If it is left in your pocket, it may be an academic offence. When you are done your exam, raise your hand for someone to come and collect your exam. Do not collect your bag and jacket before your exam is handed in. If you are feeling ill and unable to finish your exam, please bring it to the attention of an Exam Facilitator so it can be recorded before leaving the exam hall. In the event of a fire alarm, do not check your cell phone when escorted outside. Exam Format and Grading Scheme: All questions must be answered in the examination books. Answer ONLY THREE of the following four questions. (If you answer more than three, only the first three questions you answer will be graded.) The questions have equal weight . No aids allowed (except ruler). Please start each question at the top of a new page. Page 1 of 3 Students must hand in all examination materials at the end
1. “For decades, many immigrants who were selected for their educational achievements and work experience have complained about being unemployed or under-employed because their foreign credentials are devalued in Canada…. The Ontario government is unveiling a new plan to help get immigrants working in the fields where they have expertise. Legislative changes to be introduced Thursday would force some professional regulators to drop Canadian work experience requirements from their licensing criteria…. The proposed amendments to the Fair Access to Regulated Professions and Compulsory Trades Act would cover 37 non-health-related professions and trades. The affected fields would range from architecture to teaching, social work, plumbing, electricians’ work and autobody repair… Labour Minister McNaughton called the changes ‘unprecedented’ and said they were long overdue.” ( Toronto Star , Oct 21, 2021, p. A11.) (A) Describe the methodology and summarize the results of the field experiments by Oreopolous (2011) and the follow-up study by Banerjee et al (2017) which were intended to assess the impact of the Canadian experience requirement and the extent of race discrimination in recruitment and selection in the Greater Toronto Area. In light of the Oreopolous findings, comment on predicted impact of the proposed legislation that would force “professional regulators to drop Canadian work experience requirements from their licensing criteria.” (B) Explain the difference between explicit and implicit bias One of the changes recommended by Oreopolous to reduce implicit bias was the use of name-blind recruitment . Summarize the results of the 2017 name-blind recruitment pilot project conducted by the Public Service Commission of Canada in 2017. Critically assess the government’s conclusion that “ name-blind recruitment is ineffective.” What other changes would you recommend to current employers’ recruitment practices and/or to Ontario government policy to deal with the issues raised in the Oreopolous study. 2. “Women in their core years earned on average 13.3 per cent less per hour than men in 2018, marking a 5.5 percentage point improvement since 1998, according to a new report from Statistics Canada [Rachelle Pelletier et al, The Gender Wage Gap in Canada: 1998 to 2018 ].” ( Toronto Star , October 8, 2019, p. B1). Use a diagram to explain the Oaxaca decomposition technique for assessing the amount of the gap in earnings between males and females that is due differences in productive attributes and the proportion that is due to discrimination. Review the evidence in Pelletier et al (2019) concerning the proportion of the 13 per cent gap in hourly earnings that can be explained by differences in the quantity of productive attributes (such as education and experience) between males and females. Indicate which productive attributes females have more than males and vice-versa. Explain the f actors responsible for the reduction in the size of the gender gap over the past two decades (drawing on Pelletier 2019). Page 2 of 3
3. “Ru Taggar, an executive vice-president at Sunnybrook Hospital in Toronto, says… the hospital is working in earnest to clear a backlog of nearly 5000 surgical procedures that were put off because of the COVID-19 pandemic… ‘The challenge has been the supply of nurses.’… She says that one change she would like to see to ensure nurses stay in the profession is more flexible scheduling that allows a better work-life balance… Doris Grinspun, the CEO of the registered Nurses Association of Ontario, says the shortage is being worsened by provincial legislation, known as Bill 124, that caps wage increases for nurses and other public sector workers at one per cent. The legislation is disincentivising nurses to stay in the profession… She would like to see an improvement in compensation, so do away with Bill 124 and let the unions negotiate.” ( Toronto Star , October 6, 2021) Use an income-leisure choice diagram to explain the impact on employee satisfaction of allowing an employee to voluntarily engage in jobsharing in order to achieve less stress and more free time. Assess the advantages and disadvantages of jobsharing for the employer . Explain how an improvement in compensation would be expected to affect the number of hours that a nurse wants to work, using both an income-leisure choice diagram and an intuitive explanation. 4. “In 2015, twenty-nine per cent of employers offered their largest group of employees a flexible benefits plan, an increase from 27 per cent in 2012.” (The Conference Board of Canada, Benefits Benchmarking 2015, p.12) (A) Briefly describe the magnitude of non-wage benefits (as a percentage of total compensation) at large firms in Canada and the trend in benefit expenditures over time. Explain why employers provide benefits rather than simply providing the equivalent amount of wages to employees. (B) Explain the economic advantages and/or disadvantages for employers and employees of moving from fixed benefits to flexible benefits. Use a consumer-choice diagram and analyze a simple case of two benefits: a health plan (H) and a pension plan (P). Also discuss the broader HR and IR impacts of such a change. End of Exam Page 3 of 3
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