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Principles of Economics 2e

2nd Edition
Steven A. Greenlaw; David Shapiro
ISBN: 9781947172364

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BuyFindarrow_forward

Principles of Economics 2e

2nd Edition
Steven A. Greenlaw; David Shapiro
ISBN: 9781947172364
Textbook Problem

Does the earnings gap between the average wages of females and the average wages of males prove labor market discrimination? Why or why not?

To determine

Whether the gap between the average wages of males to females prove labor market discrimination.

Explanation

When the earnings gap vary gender wise owing to labor market discrimination

  • Wages in the labor market should be based on skills and seniority. There may be some areas where the female counterparts cannot work. Jobs requiring lifting heavy loads or driving transportation trucks over long distances are male-dominated. However, there are also many jobs which require a specific skill of communication (e.g. at reception), patience and skill at handling people (labor relations officers, housekeepers in hotels etc). In some areas like in IT, office works, design, research and development, there is no visible difference between the workload of both the counterparts.
Still, owing to traditional ideas, companies generally tend to look at female workload less seriously and mostly pay them less where the pay scale is not well defined.

However, women have equal participation in the success of a company. A female housekeeper, who manages the hotel customers deftly, patiently and with a smile is equally responsible for the success of the hotel in retaining its customers...

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