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31 Oct 2020

2. Gender discrimination in the labor market occurs when

a. employers pay women less than men despite having comparable levels of education, experience, and expertise.

b. employers pay men more than women despite having comparable levels of education, experience, and expertise.

c. both of the above

d. none of the above

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Raushan Raj
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31 Oct 2020

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Related questions

5. The factors that can lower women’s average wages include which of the following:

a. Women are likely to bear a disproportionately large share of household responsibilities.

b. A mother of young children is more likely to drop out of the labor force for several years or work on a reduced schedule than is the father.

c. In the United States, childless women with the same education and experience levels as men are typically paid comparably.

d. all of the above

3. Over the past 35 years, an increasing number of mothers have gone back to work relatively quickly after giving birth. Consider a labor market where a worker’s wage is a function of his or her years of education past the compulsory level (E), work experience (X), and years of tenure with their current employer (T). Suppose the relationships between wages, education, experience, and tenure for males (M) and females (F) can be represented by the equations

WM = 3 + 0.5E + 0.4X + 0.2T

and

WF = 3 + 0.4E + 0.3X + 0.3T.

On average, E = 4, X =20, and T = 8 for men, while for women the averages are E = 4, X = 14, and T = 4.

A) Find the average wage of men and women. What is the ratio of female to male wages? What is the gap between women and men’s wages in percentage terms?

B) What wage would women earn if they had the same pre-market characteristics as men on average? What would be the ratio of women’s to men’s wages?

C) Express the amount of current wage discrimination in percentage terms.

Suppose in the analysis that years of tenure are either unmeasurable or unobservable to the researcher. As a result, the analysis produces the following wage equations.

WM = 4.6 + 0.5E + 0.4X

and

WF = 4.2 + 0.4E + 0.3X.

D) Find the average wage of men and women. What is the ratio of female to male wages? What is the gap between women and men’s wages in percentage terms?

E) What wage would women earn if they had the same pre-market characteristics as men on average? What would be the ratio of women’s to men’s wages?

F) Express the amount of current wage discrimination in percentage terms.

G) Does this (failing to include tenure in the model) overstate or understate the effects of gender discrimination?

9. The lower levels of education for black workers can also be a result of discrimination. It may be a form of:

a. pre-labor market discrimination

b. direct discrimination by employers in the labor market

c. both a and b

d. only a

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