Gender Race and Ethnicity - Introduction to Labor Economics - Lecture Slides, Slides of Economics

Download Gender Race and Ethnicity - Introduction to Labor Economics - Lecture Slides and more Slides Economics in PDF only on Docsity! Chapter 12: Gender, Race, and Ethnicity Docsity.com Gender wage differences • Full-time female workers have weekly earnings that are approximately 75% of the weekly earnings of full-time male workers. Docsity.com Occupational segregation • index of dissimilarity - a measure of the proportion of one group that would have to change occupations to equalize the gender proportions in occupations. Docsity.com Racial earnings differences • black/white wage gap is larger than the gender wage gap, • this gap cannot be explained by differences in occupational choice, • very different patterns of employment, labor force participation, and unemployment rates, • differences in cognitive ability (as measured by the AFQT) appear to explain much of the gap. Docsity.com Ethnic differences in earnings • primarily appears to be due to differences in human capital and language proficiency. Docsity.com Search-related monopsony • the existence of discriminatory employers raises the expected cost of job search for members of groups that are the targets of discrimination, • this results in an upward sloping labor supply curve for members of the affected group, • leading to MFC > w and some degree of monopsony power. Docsity.com Legal restrictions • Equal Pay Act of 1963 made it illegal to offer different pay to men and women performing the same tasks. (It did not, however, prohibit discrimination in hiring or promotion.) • Title VII of the Civil Rights Act of 1964 filled in this gap by prohibiting discriminatory hiring practices. • disparate treatment • disparate impact Docsity.com Comparable worth • jobs are assigned “points” according to a variety of criteria, • pay is based on the number of points. Docsity.com