Copyright © 2009 Pearson Education, Inc Topic 7 (Chapter 12) Gender and Race in Pay
Copyright © 2009 Pearson Education, Inc Table 12.1: Shares of the Civilian Labor Force for Major Demographic Groups: 1984, 1994, 2004, 2014
Copyright © 2009 Pearson Education, Inc Figure 12.1: Mean Earnings as a Percentage of White Male Earnings, Various Demographic Groups, Full-Time Workers over 24 Years Old, 2005
Copyright © 2009 Pearson Education, Inc Table 12.2: Female Earnings as a Percentage of Male Earnings, by Age and Education, Full-Time Workers, 2005
Copyright © 2009 Pearson Education, Inc Table 12.3: Female/Male Earnings Ratios and Percentages of Female Jobholders, Full-Time Wage and Salary Workers, by Selected High- and Low-Paying Occupations, 2005
Copyright © 2009 Pearson Education, Inc Table 12.4: Employment Ratios, Labor Force Participation Rates, and Unemployment Rates, by Race and Gender,*
Copyright © 2009 Pearson Education, Inc Table 12.5: Male Earnings Differences, by Ancestry, 1990
Copyright © 2009 Pearson Education, Inc Measured and unmeasured sources of earnings differences Measured sources -Education -Experience -Working hours -Occupation Unmeasured sources -Other characteristics (Quality, Language proficiency) -Social role (fat, ugly, bald, short) -Discrimination
Copyright © 2009 Pearson Education, Inc Theories of discrimination Discrimination by employer, employees, and customer. Employer discrimination: -MRP=W m -W f =W m -d => MRP=W f +d -Or d’=(W m /W f )-1 - Firm cannot maximize profits -Maximizing utility, U=U(taste, profit)? -Discrimination is greater if the minority group is a larger fraction of population
Copyright © 2009 Pearson Education, Inc Figure 12.2: Equilibrium Employment of Women or Minorities in Firms that Discriminate
Copyright © 2009 Pearson Education, Inc Figure 12.3: Market Demand for Women or Minorities as a Function of Relative Wages
Copyright © 2009 Pearson Education, Inc Figure 12.4: Effects on Relative Wages of an Increased Number of Nondiscriminatory Employers
Copyright © 2009 Pearson Education, Inc Figure 12.5: Effects on Relative Wages of a Decline in the Discriminatory Preferences of Employers
Copyright © 2009 Pearson Education, Inc Discrimination by employees and customers Employees have discriminatory preferences costly to employers, but so is getting rid of it. Customer discrimination. cf) Statistical discrimination: part of screening problem. i) Employers use a group performance as a screening device. ii) Employers have more difficulty in finding the productivity of minority.
Copyright © 2009 Pearson Education, Inc Figure 12.6: The Screening Problem
Copyright © 2009 Pearson Education, Inc Figure 12.7: Labor Market Crowding
Copyright © 2009 Pearson Education, Inc Government programs to end discrimination Equal Pay Act of 1963: outlaw separate pay scales for women and men (no mentioning equal opportunity) Affirmative Action Plan of 1965: Equal employment opportunity plus required federal contractors to file action plans showing how they intended to increase employment of minorities.
Copyright © 2009 Pearson Education, Inc Table 12.6: Change in the Racial Composition of a 1,600-Person Job Group with Nondiscriminatory Hiring from a Pool That Is 12% Black (20% yearly turnover rate)
Copyright © 2009 Pearson Education, Inc Figure 12A.1: Estimated Male Comparable-Worth Salary Equation
Copyright © 2009 Pearson Education, Inc Figure 12A.2: Using the Estimated Male Comparable-Worth Salary Equation to Estimate the Extent of Underpayment in Female Jobs