Econ
Which is occupational discrimination
97% of all secretaries are women
statistical discrimination
A person is judged on the basis of the average characteristics of her or his demographic group
An employer who is willing to pay a wage premium to avoid employing persons from some particular group is engaging in
A taste for discrimination
Benefit/cost analysis
All of the above
Assuming competitive markets, migration in response to wage differentials will likely result in
An increase in both the value of output and economic efficiency
The concept of noncompeting groups suggests that workers in different groups
Are imperfect substitutes for one another
The demand curve eventually slopes downward because
As the African American white ratio falls, more firms find it too costly to indulge in their tastes for discrimination
Assume that all workers are equally productive, but that male wages are $14 and female wages are $10. An employer who employs only male workers has a discrimination coefficient of:
At least $4
Statistical discrimination and Becker's taste for discrimination
Differ in that the former results in potientisllt increased profits firms with taste for discrimination will,have lower
An employer whose discrimination coefficient is zero
Does not discriminate against women or minorities
The firms isoprofit curve, P is shown as concave to the orgin reflecting the assumption that
Each successive increase in job safety comes at an increasing expense to the firm
Suppose that all other nonwage aspects of the jobs in these two markets are identical.We would expect labor supply in B to increase if
Earnings are more equally distributed in B
Refer to the following diagram. Suppose that all other nonwage aspects of the jobs in these two markets are identical. We would expect labor supply in B to increase if
Earnings are more variable in A
If job X pays more than identical job Y then the wage rate will
Equalize if information is perfect and mobility is costless
Fringe benefit packages differ substantially from one firm to the next because
Firms may structure their fringe benefit packages to attract specific types of workers
Which of the following is not predicted by the hedonic theory of wages
Firms that pay lower wages but offer more amenities have higher than average profits
Which of the following research findings would support an efficiency wage explanation of pay differentials?
Firms with higher costs of detecting shirking pay higher than average wages
Consider a worker who faces a trade off between wages on the vertical axis and job safety on the horizontal axis
Flatter are this worker's indifference curves
Increase in immigration rates unskilled illegal aliens which will not result
For each immigrant who receives a job, there would be one less job available for a native worker.
The high psychic costs of leaving friends and family deter migration in response to wage differentials
Geographic immobilities
Interfere with worker A
Has a stronger taste for income relative to job safety than worker B
Heterogeneous jobs are those that
Have differing nonwage attributes
The theory of compensating differentials predicts that
Holding worked characteristics constant, workers experiencing poor conditions will earn more than those experiencing good conditions
Discrimination in the form of access barriers to productivity-increasing opportunities is termed
Human capital discrimination
Suppose a firm decides to raise pay as a way to reduce worker turnover. The resulting pay differential
Is an equilibrium differential
The expected private rate of return to migration to a particular individual
Is similar to that on other forms of investment in human capital
Assuming workers and jobs are indentical, if information is perfect and job search and migration are cost less then
Labor will flow among employers
Assuming workers and jobs are identical, if information is perfect and job search and migration are costless, then
Labor will flow among employers until all wages are equal.
Refer to the following diagram. Consider the two labor markets shown in the diagram above. The wage rates shown represent
Long run equilibrium if all nonwage aspects of the jobs are identical
If workers are mobile and well informed about the compensation packages
Make workers worse off if the reduction in wages that is necessary for firms to provide the benefits exceeds
A particular employer's discrimination coefficient d:
Measures the amount an employer is willing to pay to hire a white rather than African American worker
Which of the following is not a source of persistent compensating wage differential
Migration from lower paying jobs to higher paying jobs
Refer to the following diagram, in which Waa/ Ww is the ratio of the African American wage rate to the white wage rate. The horizontal portion of the demand curve will be extended by an increase in the
Number of firms that do not discriminate
Discrimination that results in the payment of a lower wage rate to a female relative to an equally productive male is termed
Occupational discrimination
Discrimination that segregates qualified women into lower-paying jobs is called
Occupational discrimination
Sam left his job to go to sears auto
Occupational mobility
Wage discrimination is
Paying one group less than another, although they have the same productive characteristics
Trade off between high wages and more relaxed environment
Places a relatively high value on additional informality on the job
An employer whose discrimination coefficient approaches infinity
Refuses to hire any women or minorities regardless of the wage differential
Workers performing dangerous jobs in the economy are typically people that
See the jobs as paying well compared to alternative employment
The wage rate paid workers at flow will most likely exceed stock co if
Stock co offers better pension and insurance benefits than flow inc
Store clerks are known to have low wages. This is likely to be reflect the fact that
Store clerk jobs are perceived to be relatively easy thus attracting low skill workers
Work in noisey environment for 500 dollars
The amount that the marginal worker is willing to pay for a quiet environment
All else equal, the wage paid to steelworkers in Youngstown, Ohio, will be lower if
The cost of living in Youngstown is lower than elsewhere
People who receive relatively high pay also tend to work In relatively desirable work environment. This is probably because
The differential required to compensate for high skill more than offsets the differential required for poor working conditions
One implication of Becker's "taste-for-discrimination" model is that
The existence of competitive market forces will cause discrimination to diminish and eventually disappear
All else equal, a worker is less likely to move
The greater the amount of specific training the worker has
Which of the following would tend to increase wage supply?
The perceived status of the job improves
Statistical discrimination is
The use of some observable characteristics by employers as a screening device in the hiring processs
If comparable workers are paid an extra $1.00 per hour to work outdoors, then
The value of indoor work is worth at least 1.00 per hour to some workers
An implication of the crowding model of segregation is that
The value of national output is reduced by segregation
Suppose all workers are identical but working for Ajax is more pleasant than working for Acme. In all other non-wage respects, the two firms offer the same job characteristics. In equilibrium,
The wage at Ajax will be lower than at Acme
Refer to the diagram below, which represents a local labor market consisting of two submarkets. All workers are assumed to be identical. Suppose that the wage in B is higher because workers perceive disutility of $2 associated with this job relative to A. Assuming that information is perfect and mobility between jobs is costless, we can conclude that
The wage differential between jobs a and b is an equilibrium differential
Suppose is proposed law will ham migration
US businesses would object to the law and us workers would support it
Which of the following statements is true?
Wage differentials caused by the existence of non competing groups can persist over time
African American woman paid less than white man is
Wage discrimination
Becker's taste for discrimination an employer who is prejudice against African Americans
Will only hire African Americans if the wage differential exceeds his discrimination coefficient
Which one of the following non-discriminatory factors may account for lower observed wages for women compared to men?
Women have stronger preferences for job safety
Which of the following is NOT an assumption on which the theory of compensating differentials is based?
Workers always try to choose the highest paying job available