Welcome to Econ 325 Economics of Gender Week 7 Beginning March 5

Monday, March 5 Part Two of paper is due Friday Observed similarities and/or differences. Charts/Tables/Graphs − Must have titles − Must have footnotes – Data source – Personal calculations (if any) − Complete explanation (no outline) Study Chapters 5 & 6 You are responsible for entire chapters Expect ICA on PP

Collect OCA4 1) #2, page 157 2) #4, page 157, give as many reasons as you can.

ICA (true or false?) 1.In recent years, the ratio of the median income of black female to the median income of white female has been higher than the same ratio for male? True, Table 5-10, Page In recent years, the ratio of the median income of black female to the median income of black male has been lower than the same ratio among whites? False, Table 5-9, Page 152

ICA (true or false?) 3. In 2003, there was a smaller gender gap between the mean earnings of college grads than the mean earnings of high school grads. False, Table 5-8, Page The occupational segregations has remained constant during period. False, Table 5-5, Page 145

Types of Capital (Chapter 6) 1.Financial Capital Money, Bonds, Stocks …etc. Investment = buying bonds/stocks 2.Physical Capital Machineries, tools, …etc. Investment = buying machineries/tools 3.Human Capital Knowledge, know-how,…etc. Investment = receiving education/training

Human Capital Model of Gender Differences Focuses on the effects of the gender differences in acquiring human capital on the gender differences in the labor market

Who should invest on human capital? (The Education Investment) Experience–earning profile Assumptions 1) Pat is a high school grad trying to decide if he/she should go to college 2) Direct (explicit) cost of college = $20,000/year for 4 years 3) Indirect (implicit) cost of college = opportunity cost = $10,000/year at first 4) If Pat goes to college he/she will not work

Experience-Earning Profile 1. If Pat does not go to college Why is the slope positive? − Experience Why is the slope declining? − Depreciation of human capital

Experience-Earning profile 2. If Pat goes to college? Explicit/ implicit (opportunity) cost of acquiring human capital Why E-E profile is steeper than E-E profile of High School grad? The rate of growth is higher Fast track Will Pat end up investing on education? Yes, if expected costs < expected benefits

OCA5: Due Wednesday. #2, page 200. I need a clear explanation and a clear graph for each part.

Friday, March 9 Return and discuss OCA4 1) #2, page 157 2) #4, page 157, give as many reasons as you can. Study Chapter 6

Collect OCA5 #2, page 200. I need a clear explanation and a clear graph for each part.

Part two of paper due date changed to Monday, March 19 Observed similarities and/or differences. Charts/Tables/Graphs Must have titles Must have footnotes − Data source − Personal calculations (if any) Complete explanation (no outline)

ICA: Are the following statements true or false? 1.During the last three decades, a higher proportion of men than women have been high school dropouts. 2.In 2003, a higher proportion of black women than black men were college graduates. 3.In , a higher proportions of Master’s degrees were awarded to women than to men. 4.In , a higher proportion of Bachelor’s degrees in Math were awarded to men than to women. 5.In , a higher proportion of Bachelor’s degrees in Economics were awarded to men than to women.

Gender Differences in Educational Attainment Table 6.1, page 161 Table 6.2, page 162 Table 6.3, page 163 Table 6.4, page 164 Table 6.5, page 165

Applications of Human Capital Model 1.Use the E-E Profile to explain why women may earn less than men. 2.Use the E-E Profile to explain why some college educated women earn less than their male colleagues. 3.Use the E-E Profile to explain why women tend to avoid fields where the rate of technological changes is rapid.

Applications of Human Capital Model 4. Use the E-E Profile to explain why women who are planning to work as many years as men (no interruption) may be less likely than men to go to college