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