In Y In Y" = Xu D In y In Y=,X In Y X, X Productive characteristics, X Consider the Oaxaca framework for the decomposition of the wage gap between two groups of workers. In figure SB 12-2, the portion of the wage gap that is attributed to pre-market characteristics is: The distance between B and C slujuea Sog

In Y In Y" = Xu D In y In Y=,X In Y X, X Productive characteristics, X Consider the Oaxaca framework for the decomposition of the wage gap between two groups of workers. In figure SB 12-2, the portion of the wage gap that is attributed to pre-market characteristics is: The distance between B and C slujuea Sog

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter19: Earnings And Discrimination

Section19.2: The Economics Of Discrimination

Problem 2QQ

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Similar questions

Does the earnings gap between the average wages of females and the average wages of males prove labor market discrimination? Why or why not?
Does a gap between the average earnings of men and women, or between whites and blacks, prove that employers are discriminating in the labor market? Explain briefly.
Exercise 15.2 and Exercise 15.3 asked you to describe the labor-leisure tradeoff for Jonathon. Since, in the first example, there is no monetary incentive for Jonathon to work, explain why he may choose to work anyway. Explain what the opportunity costs of working and not working might be for Jonathon in each example. Using your tables and graphs from Exercise 15.2 and Exercise 15.3, analyze how the government welfare system affects Jonathans incentive to work.
Suppose the bottom 50 percent of a population (in terms of earnings) all receive an equal share of p percent of the nation’s income, where 0 ≤ p ≤ 50. The top 50 percent of the population all receive an equal share of 1 - p percent of the nation’s income. a. For a ny s uch p, what is the Gini coefficient for the country? b. For any such p, what is the 90-10 wage gap?
After controlling for age and education, it is found that the average woman earns $0.80 for every $1.00 earned by the average man. After controlling for occupation to control for compensating differentials (i.e., maybe men accept riskier or more stressful jobs than women, and therefore are paid more), the average woman earns $0.92 for every $1.00 earned by the average man. The conclusion is made that occupational choice reduces the wage gap 12 cents and discrimination is left to explain the remaining 8 cents.a. Explain why discrimination may explain more than 8 cents of the 20-cent differential (and occupational choice may explain less than 12 cents of the differential).b. Explain why discrimination may explain less than 8 cents of the 20-cent differential.
For any given job, how do the economy-wide labour market conditions affect aworker’s bargaining power? Explain which labour market variable you would look at toassess labour market conditions.
Suppose that education is the only factor that affects productivity and that an additional year of education raises wages by 2%. Suppose in 2011 gender wage gap was 13%, and the average man had 15 years of education while the average women had 14 years of schooling. a) Using the wage gap decomposition technique, calculate how much of the 13% wage differential is due to discrimination? b) Now suppose in 2021 the gender wage gap is 10%, but the average woman’s education level is increased to 17 year and the average man’s education increases to16 years. (Assume that the return to education stays same at 2%), Was there a decrease or an increase in wage discrimination in the decade? Why?
Suppose 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 functions
Suppose the immigrant flow from Lowland to Highland is positively selected. In order to mitigate the “brain drain” Lowland experiences as a result of this migration, public officials of Lowland successfully convince all Lowlanders who migrate to Highland to remit 10 percent of their wages to family members.a. What effect will this policy have on the immigrant flow?b. Provide a graph that details the extent to which this policy will limit the brain drain.
Alternative explanations of wage disparities Suppose that a labour economist finds that one of her research subjects has earned significantly higher wages throughout his lifetime than would be predicted by standard measured variables. The economist also noted that each of the subject's positions was found through connections at his family's exclusive country club. Which one of the following most likely explains this person's unusually high earnings? a) Effort b) Compensating differentials c) Chance d) Efficiency wages Suppose that Frances receives higher pay at her workplace than her colleagues do, even though they perform essentially the same type of work. If Frances's productivity is about 25% higher than that of each of her colleagues, which of the following wage concepts can explain this wage disparity? Check all that apply. a) Efficiency wages b)The superstar phenomenon c) Discrimination d) Human capital e)…
Paying soldiers more who are in combat zones is an example of? O wage discrimination O compensating differentials O human capital effect O segmented market effect 111
Consider the standard Harris-Todaro framework for rural-urban migration from class. I.e. there is a minimum wage in the formal urban sector and urban residents who fail to get a formal sector job wind up unemployed. In contrast, the agricultural labor market has no frictions. Now let's imagine that, due to climate change and mismanagement of water resources, the water table falls, reducing the marginal product of labor - and hence the wage - in the rural, agricultural sector. What effect would this have on the unemployment rate in urban areas? Choose the best option A. The urban unemployment rate would go up. B. The urban unemployment rate would stay the same. C. There is not enough information to determine what will happen to the urban unemployment rate. D. The urban unemployment rate would go down.