Microeconomics (7th Edition)
7th Edition
ISBN: 9780134737508
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 17, Problem 17.4.12PA
To determine
The existence of economic discrimination and its impact on wages.
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does a gap between the average earning of between of men and women, or between whites and black, prove that employers are discriminating in the labor market? Explain briefly.
In this context also examine the following: In 2007 the president of the University of the Southern of California was paid $900,000 and the football coah was paid $ 4 million. Dos it makes any sense?
Which of the following statements proves the existence of wage discrimination?
a. Male prison guards earn more on average than female prison guards.
b. Professor of economics earn more on average than professors of gender studies.
c. Men earn more on average than women.
d. All of the above prove the existence of wage discrimination.
e. None of the above prove the existence of wage discrimination.
Why do economists say that discrimination is inerhently inefficent and therefore will not occur in general?
Chapter 17 Solutions
Microeconomics (7th Edition)
Ch. 17 - Prob. 17.1.1RQCh. 17 - Prob. 17.1.2RQCh. 17 - Prob. 17.1.3RQCh. 17 - Prob. 17.1.4RQCh. 17 - Prob. 17.1.5PACh. 17 - Prob. 17.1.6PACh. 17 - Prob. 17.1.7PACh. 17 - Prob. 17.1.8PACh. 17 - Prob. 17.1.9PACh. 17 - Prob. 17.2.1RQ
Ch. 17 - Prob. 17.2.2RQCh. 17 - Prob. 17.2.3PACh. 17 - Prob. 17.2.4PACh. 17 - Prob. 17.2.5PACh. 17 - Prob. 17.2.6PACh. 17 - Prob. 17.2.7PACh. 17 - Prob. 17.2.8PACh. 17 - Prob. 17.3.1RQCh. 17 - Prob. 17.3.2RQCh. 17 - Prob. 17.3.3PACh. 17 - Prob. 17.3.4PACh. 17 - Prob. 17.3.5PACh. 17 - Prob. 17.3.6PACh. 17 - Prob. 17.3.7PACh. 17 - Prob. 17.3.8PACh. 17 - Prob. 17.4.1RQCh. 17 - Prob. 17.4.2RQCh. 17 - Prob. 17.4.3RQCh. 17 - Prob. 17.4.4PACh. 17 - Prob. 17.4.5PACh. 17 - Prob. 17.4.6PACh. 17 - Prob. 17.4.7PACh. 17 - Prob. 17.4.8PACh. 17 - Prob. 17.4.9PACh. 17 - Prob. 17.4.10PACh. 17 - Prob. 17.4.11PACh. 17 - Prob. 17.4.12PACh. 17 - Prob. 17.4.13PACh. 17 - Prob. 17.4.14PACh. 17 - Prob. 17.4.15PACh. 17 - Prob. 17.4.16PACh. 17 - Prob. 17.4.17PACh. 17 - Prob. 17.4.18PACh. 17 - Prob. 17.4.19PACh. 17 - Prob. 17.5.1RQCh. 17 - Prob. 17.5.2RQCh. 17 - Prob. 17.5.3PACh. 17 - Prob. 17.5.4PACh. 17 - Prob. 17.5.5PACh. 17 - Prob. 17.5.6PACh. 17 - Prob. 17.5.7PACh. 17 - Prob. 17.6.1RQCh. 17 - Prob. 17.6.2RQCh. 17 - Prob. 17.6.3RQCh. 17 - Prob. 17.6.4PACh. 17 - Prob. 17.6.5PACh. 17 - Prob. 17.6.6PACh. 17 - The total amount of oil in the earth is not...Ch. 17 - Prob. 17.6.8PACh. 17 - Prob. 17.1CTECh. 17 - Prob. 17.2CTECh. 17 - Prob. 17.3CTE
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- 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.arrow_forwardDoes the earnings gap between the average wages of females and the average wages of males prove labor market discrimination? Why or why not?arrow_forwardAfter 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.arrow_forward
- Discrimination in the labour market The following table lists the name, height, and minimum wage 10 people are willing to accept to work as sales clerks at a high-end clothing store. Name Height Minimum Wage (Centimetres) (Dollars per week) Eileen 170 $301 Amy 167 $325 Deborah 170 $349 Van 181 $362 Carlos 179 $386 Janet 168 $410 Felix 175 $423 Raphael 176 $447 Larry 168 $460 Megan 176 $484 The lowest wage that the clothing store can pay to hire five sales clerks is $ per week. Suppose the head of the clothing store has a preference for tall employees because he thinks it will increase revenue, and thus, he imposes the restriction that all sales clerks hired must be at least 172 centimetres in height. Under this new regulation, the wage rate the clothing store must pay to attract five sales clerks rises by $ per week.arrow_forwardWhich of the following statements is correct? If potential employers could observe the productivities of different individuals, but still offer different salaries to man and women, the employers are having statistical discrimination. The findings of Charles & Guryan (2008) suggest that the black-white wage gap in the U.S. is unaffected by the prejudices of the most prejudiced persons in a state, which provides evidence against the taste-based discrimination in the U.S. There are two hypothetical countries. Each country has three people. In County A, the wealth of the three persons are respectively 9, 10, and 11. In Country B, the wealth of the three persons is respectively 4, 6, and 9. As measured by the standard deviation of wealth, Country A has lower wealth inequality. Consider a graph where the probability of injury is represented on the horizontal axis, and the wage is represented on the vertical axis. The isoprofit curves on this graph are…arrow_forward
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