Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506725
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 26, Problem 4CQ
(a):
To determine
Discrimination against the minority employees and its impact.
(b):
To determine
Differences in the wages, and employment discrimination.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Most studies indicate that women earn 82% of what men earn. Does this necessarily reflect discrimination or might there be other factors that could explain the difference? Be specific about what those factors are if any.
Consider discrimination in employment. Suppose dark-haired employees don't like working with blonde employees. Could this discrimination explain lower wages for blond employees? If such a pay differential existed, what would an entrepreneur who wants to maximize profits do? If there were many entrepreneurs with the same strategy, what would happen over time?
List the six factors that can explain a variance in earnings. Select ONE factor and list two reasons why this you believe this factor has the most influence in wage differences.
Why is the price elasticity of supply different for low mobility workers and high mobility workers?
In proving that there are earnings differentials caused by discrimination, what three factors are necessary in a study conducted to prove this point?
Chapter 26 Solutions
Economics: Private and Public Choice (MindTap Course List)
Knowledge Booster
Similar questions
- What policies, when used together with antidiscrimination laws, might help to reduce the earnings gap between men and women or between white and black workers?arrow_forwardWomen earn less on average than men. Which of the following would be the logical conclusion? Women must be the victim of employment discrimination. Men must be more highly motivated and materialistic. Women must be less productive. O Without consideration of preferences and productivity factors, differences in unadjusted mean earnings do not necessarily reflect employment discrimination.arrow_forwardWhat is a factor where a portion of a wage gap may not be the result of discrimination? Explain why this factor is not a discriminatory practice.arrow_forward
- The U.S. Bureau of the Census reported that, on average, white men earn $50, 945, whereas white women earn $31,008. Economic discrimination explains at least some of this wage gap, but economists think that there are other factors that also contibute to wage gaps. Which factor is not an explanation offered by economists for these types of wage gaps? Various groups in the population graduate from college at varying rates. Differences in earnings can be explained in part by differences in educational attainment. Men and women take different types of jobs. Men are more likely to prioritze jobs with higher wages, and women are more likely to prioritize jobs with other desirable characteristics. On average, men and women have different amounts of experience in their jobs. Ceteris paribus, men are less likely to temporarily leave the workforce and, therefore, have more experience than women. There are innate differences between men and women that make men more productive than women. Because…arrow_forwardSuppose male wages are determined by the earnings function WM = 25 + 0.40EM and female wages are determined by the earnings function WF = 15 + 0.20EF. If women have 10 years of experience and men have 20, what is the gender wage gap? How much can be attributed to human capital differences and how much is unexplained, and therefore attributed to discrimination? Show this scenario on a graph of both the male and female earnings functionsarrow_forwardUsing the concept of opportunity cost, explain why discrimination against any population group is economically inefficient?arrow_forward
- Which of the following is an example of human capital discrimination? OA University is found guilty of discriminating against minorities in their admissions policy. A federal agency is found guilty of granting contracts only to firms owned and operated by white people. Women are crowded into nursing and teaching. Two employees, a man and a woman, have the same qualifications and experience, but the man is paid a higher wage. An employer refuses to hire minority people. A supply-side policy to reduce illegal drug usage would include A) Treatment programs for drug addiction. B) Clean needle exchange programs. O C Crop eradication.. O D) Education about the harm of illegal drugs.arrow_forwardA studied difference in women's and men's labor market outcomes is their different distributions in industries and occupations. a) What indicator is used to measure gender occupational segregation? Explain the components and meaning of this indicator. b) What are the typical supply-side explanations for gender differences in occupations and earnings? c) Define societal discrimination and labor market discrimination. d) Give an example of a case when voluntary choices, societal discrimination, and labor market discrimination mix.arrow_forwardThe labor demand and supply data in the following table relate to a single occupation. Use them to answer the questions that follow. Base your answers on the taste-for-discrimination model. a. Plot the labor demand and supply curves for Hispanic workers in this occupation.b. What are the equilibrium Hispanic wage rate and quantity of Hispanic employment? c. Suppose the white wage rate in this occupation is $16. What is the Hispanic-to-white wage ratio?d. Suppose a particular employer has a discrimination coefficient d of $5 per hour. Will that employer hire Hispanic or white workers at the Hispanic-white wage ratio indicated in part c? Explain.e. Suppose employers as a group become less prejudiced against Hispanics and demand 14 more units of Hispanic labor at each Hispanic wage rate in the table. What are the new equilibrium Hispanic wage rate and level of Hispanic employment? Does the Hispanic-white wage ratio rise or fall? Explain.f. Suppose Hispanics as a group increase their labor…arrow_forward
- Use a demand-and-supply model to explain the impact of occupational segregation or “crowding” on the relative wage rates and earnings of men and women. Who gains and who loses from the elimination of occupational segregation? Is there a net gain or a net loss to society? Explainarrow_forwardshould employment be based on meritocracy, need, or affirmative action-type policies designed to bring about greater diversity?arrow_forwardDescribe how the earnings gap between men and women has evolved in recent decades.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning