LABOR ECONOMICS (LL+ACCESS)
8th Edition
ISBN: 9781264909339
Author: BORJAS
Publisher: MCG
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Chapter 9, Problem 6RQ
To determine
Explain statistical discrimination.
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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?
The U.S. Bureau of the Census reported that, on average, white men earn $50, 945, whereas white women earn $31,008.
Economic discrimination explains at least some of this wage gap, but economists think that there are other factors that also
contibute to wage gaps.
Which factor is not an explanation offered by economists for these types of wage gaps?
Various groups
in the population graduate from college at varying rates. Differences in earnings can be explained in part
by differences in educational attainment.
Men and women take different types of jobs. Men are more likely to prioritze jobs with higher wages, and women are
more likely to prioritize jobs with other desirable characteristics.
On average, men and women have different amounts of experience in their jobs. Ceteris paribus, men are less likely to
temporarily leave the workforce and, therefore, have more experience than women.
There are innate differences between men and women that make men more productive than women. Because…
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?
Chapter 9 Solutions
LABOR ECONOMICS (LL+ACCESS)
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- What is a factor where a portion of a wage gap may not be the result of discrimination? Explain why this factor is not a discriminatory practice.arrow_forwardDerive the Oaxaca measure of discrimination. Does this statistic truly measure the impact of discrimination on the relative wage of the affected groups?arrow_forward
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