Economic discrimination.

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Chapter 17, Problem 17.4.2RQ

To determine

Economic discrimination.

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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?

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.

Give an example of how discrimination might persistin a competitive market.