Presentation on theme: "Chapter 12: Gender, Race, and Ethnicity. Gender wage differences Full-time female workers have weekly earnings that are approximately 75% of the weekly."— Presentation transcript:
Gender wage differences Full-time female workers have weekly earnings that are approximately 75% of the weekly earnings of full-time male workers.
Reasons for gender wage differences educational attainment, prior work experience, average weekly hours of work, occupational choice, and discrimination.
Discrimination Discrimination exists if wage is related to factors other than a worker’s productivity.
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.
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.
Ethnic differences in earnings primarily appears to be due to differences in human capital and language proficiency.
Theories of discrimination employer discrimination, customer discrimination, employee discrimination, and statistical discrimination.
Noncompetitive models of discrimination crowding, and dual labor markets.
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.
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
Comparable worth jobs are assigned “points” according to a variety of criteria, pay is based on the number of points.
Federal Contract Compliance Program created in 1965 to ensure that firms doing business with the federal government engage in nondiscriminatory employment behavior. firms doing business with the federal government are required to maintain a mix of workers that is proportionate to their representation in the relevant labor market.