Males under the age of 25 must pay far higher auto insurance premiums than females in this age group. How does this fact relate to statistical discrimination? Statistical discrimination implies that discrimination can persist indefinitely, while the taste-for-discrimination model suggests that competition might reduce discrimination in the long run. Explain the difference

Males under the age of 25 must pay far higher auto insurance premiums than females in this age group. How does this fact relate to statistical discrimination? Statistical discrimination implies that discrimination can persist indefinitely, while the taste-for-discrimination model suggests that competition might reduce discrimination in the long run. Explain the difference

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter12: Income Distribution, Poverty, And Discrimination

Section: Chapter Questions

Problem 1SQ

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What is statistical discrimination? Why do employers use group membership as an indicator of a worker’s productivity? What is the impact of statistical discrimination on the wage of the affected workers? Must statistical discrimination reduce the average wage of blacks or women?
Consider the following information: Suppose the median annual earnings of white females are 28% lower than the median annual earnings of white males. This means that: Neither of the other conclusions can be drawn from this one statistic. There is no discrimination against females; females just do less-dangerous work than males. There is no discrimination against females; females just have less human capital than males.
Select whether True or False An example of economic discrimination is the creation of "ethnic" neighborhoods. In this example, econornic discrimination allows for society to keep "undesirable" elements and people out of certain ares of a city. Therefore, it is a means of keeping certain areas of the city more economically valuable, especially in terms of property values. True False
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 nations income. Calculate the Gini coefficient as an expression of p
In 2006, Evo Morales assumed the presidency in Bolivia, a South American country in which official commerce is done in Spanish. Morales was the first Bolivian president of indigenous decent. As president, he quickly instituted reforms that were designed to reduce discrimination against indigenous populations with the aim of eventually reducing inequality. Suppose discrimination before Morales took two forms: discrimination in education by not providing state funds to educate all children (and particularly not educating indigenous children in Spanish) and discrimination in the job market by firms not willing to hire indigenous workers.a. In terms of education, which policy do you think would be more successful at combating discrimination and inequality: (1) providing state funds to educate all people exclusively in their native languages or (2) providing state funds for a public education system that requires all people to learn Spanish, as well as a second, indigenous language? Why?b.…
Over time, the gap between the wages of workers with a college degree and the wages of workers without a college degree has been increasing. Shouldn't this gap have increased the incentive for workers to earn a college degree, thereby increasing the supply of college-educated workers and reducing the size of the gap? This wage gap may have not been reduced because A. the demand for college-educated workers has increased more slowly than the supply of college-educated workers. B. a college education is only a signal of desirable worker characteristics and does not change wages. C. the demand for workers without a college degree has been increasing due to globalization. D. the supply for workers without a college degree has been decreasing due to immigration. E. both a and b. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
When testing for wage discrimination based on race, which of the following variables are control variables? A wage and race B experience and performance C experience and race D performance and race E wage and experience
Some part of income inequality is likely to be the result of discrimination. But other factors responsible for inequality include (select as many as apply): a. Differences in abilities and talents. b. Differences in education and training. c. Different preferences for work versus leisure. d. Different preferences for low-paying but safe jobs relative to high-paying but dangerous jobs.
is there a gap between the mean earnings for male and female recent college graduates?
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?
Derive the Oaxaca measure of discrimination. Does this statistic truly measure the impact of discrimination on the relative wage of the affected groups?
According to statistics, the main reason for male-female wage differential is: Males work longer hours Females work longer hours Discrimination in wage rates Males have more experince Females are more educated