Exam IRE339H1F 2022

docx

School

University of Toronto *

*We aren’t endorsed by this school

Course

339

Subject

Economics

Date

Feb 20, 2024

Type

docx

Pages

Uploaded by GeneralStar3498

LAST (Family) NAME: _____________________________________ FIRST (Given) NAME: ______________________________________ STUDENT NUMBER: _______________________________________ UNIVERSITY OF TORONTO Faculty of Arts & Science DECEMBER 2022 EXAMINATIONS IRE339H1F 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. “When calculating individual car insurance rates, your age, marital status, gender , car model and the neighborhood you live in are among the factors taken into consideration…. Younger drivers’ insurance costs are stacked against them just by virtue of being younger…. Within the city of Toronto, the neighborhoods with the most expensive postal codes (M3N and M9M) are Humber River – Black Creek.” ( Toronto Star , March 14, 2022, p. B1). (A) Explain the concept of statistical discrimination and discuss why you feel statistical discrimination by gender is, or is not, “fair” in the example of car insurance . Comment on the use of postal codes as a factor, given that there is some racial segregation by neighborhoods in Toronto. Also comment on the case of a young, married female employee who is passed over for a promotion because the employer anticipates that she may have children in the next few years and leave the labour force? (B) Assuming that females earn less than males on average, use two separate diagrams to explain how the Oaxaca decomposition technique can be used to decompose the earnings gap between females and males into a “legitimate” component and a “discriminatory” component in two separate cases: (i) when males have, on average, more experience than females and (ii) when females have more education than males on average. Based on the results in Pelletier (2019) describe the magnitude of the gap in hourly earnings between males and females in Canada and indicate approximately what proportion of the gap is “legitimate” (i.e., due to differences in productive attributes) and what proportion is “discriminatory” (discrimination and unmeasured factors). 2. “Ontario hiked its minimum wage [from $15.00 to $15.50 per hour] effective October 1…. ‘We’ve been calling for a $15-an-hour minimum wage for so many years now, it’s no longer enough’ said Bea Bruske, president of the Canadian Labour Congress. ‘It really needs to be $20-an-hour.’” ( Toronto Star , October 4, 2022, p. B1) (A) Describe how the Ontario government’s policy on the minimum wage has changed over the period from 1995 to 2022. (B) Compare the predicted employment effects of the introduction of a minimum wage in a competitive labour market model and in a monopsony model where an employer has some degree of monopsony power. In your explanation, use diagrams where appropriate. Also provide an intuitive explanation for any different predictions in the competitive and monopsony models. Briefly review the empirical evidence on the employment effects of minimum wage increases and, in light of your theoretical analysis and your review of the evidence, discuss the potential impacts on employment of an increase from $15.50 to $20 (an increase of approximately 30 per cent). Page 2 of 3

3. “Eduardo Queiruga is a newcomer settlement worker who has worked with immigrants for 20 years. His job is to help integrate newcomers…. He says that recent economic class newcomers are doing poorly throughout Ontario and Canada. The situation of immigrants is becoming increasingly worse.“ ( Toronto Star , Feb 2, 2022, p. A17) (A) Outline the findings of Picot and Sweetman concerning the deteriorating economic welfare of immigrants to Canada and possible causes. (B) 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. 4. “Work-Sharing helps prevent layoffs when there is a temporary reduction in the normal level of business activity that is beyond the control of the employer. The program requires a three-way agreement to be negotiated between the employer, employees and Service Canada, and provides income support to employees who work a temporarily reduced work week while the business recovers. ( Canadian Federation of Independent Business website, accessed Nov 2022.) (A) Use an income-leisure choice diagram to predict employees’ reaction to a worksharing program with short-time compensation through the Employment Insurance program. Distinguish between the predicted r eactions of a junior employee threatened with a layoff and a senior employee not threatened by a layoff. Indicate the extent to which these predictions are supported by evidence. (B) Discuss the costs and benefits of worksharing from the perspectives of employers, government and society as a whole, including any relevant empirical evidence. End of Exam Page 3 of 3

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Related Documents

Econ 102 Homework Chapter 4-2.docx

unit 1 review economics .docx

HSA 319 Quiz 5.b.docx

Midterm1_2022_Fall-v3-Solutions.pdf

ECN221- Homework1.docx

Exam IRE339H1F 2021.docx

Manavi Thakur Lab 1 Econ 175.pdf

WEEK 3 DISC Incentives and Externalities ECON 103.docx

Unit 4 Property Valuation.pdf

E1221Ch. 9 Practice Questions.pdf

Mid term Exam 1 2223.docx

SM132 Quiz One Questions.pdf

Recommended textbooks for you

Managerial Economics: Applications, Strategies an...

Economics

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:Cengage Learning

Economics Today and Tomorrow, Student Edition

Economics

ISBN:9780078747663

Author:McGraw-Hill

Publisher:Glencoe/McGraw-Hill School Pub Co

Microeconomic Theory

Economics

ISBN:9781337517942

Author:NICHOLSON

Publisher:Cengage

Microeconomics: Principles & Policy

Economics

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:Cengage Learning

Survey Of Economics

Economics

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Cengage,

Principles of Economics 2e

Economics

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:OpenStax

SEE MORE TEXTBOOKS

Recommended textbooks for you

Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co
Microeconomic Theory
Economics
ISBN:9781337517942
Author:NICHOLSON
Publisher:Cengage
Microeconomics: Principles & Policy
Economics
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:Cengage Learning
Survey Of Economics
Economics
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Cengage,
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax