1. © 2002 McGraw-Hill Ryerson Ltd.Chapter 12-1 Chapter Twelve Discrimination and Male-Female Earning Differentials Created by: Erica Morrill, M.Ed Fanshawe College

2. © 2002 McGraw-Hill Ryerson Ltd.Chapter 12-2 Chapter Focus  Wages differences between men and women  Methods of measuring discrimination  Discrimination against women  Effective policies

3. © 2002 McGraw-Hill Ryerson Ltd.Chapter 12-3 Reasons and Sources of Discrimination  Preference  Erroneous information  Statistical judgement  The effectiveness of policies depends on the reasons for the discrimination  Employers  Co-workers  Unions with male majority  Customers

4. © 2002 McGraw-Hill Ryerson Ltd.Chapter 12-4 Demand Theories of Discrimination  Demand for female labour is lower  Reducing the employment of females  Demand depends on the information concerning productivity

5. © 2002 McGraw-Hill Ryerson Ltd.Chapter 12-5 Supply Theories of Discrimination  Supply is increased  Asking wage of females is reduced  Crowding Hypothesis  females are segregated into female type jobs  Abundance of supply lowers their marginal productivity and hence the wage

6. © 2002 McGraw-Hill Ryerson Ltd.Chapter 12-6 Supply Theories of Discrimination  Dual labour market theory  Primary labour market-(unionized, monopolistic, expanding)  Secondary labour market (nonunionized, highly competitive, declining)  Men tend to be employed in primary  Women in the secondary

7. © 2002 McGraw-Hill Ryerson Ltd.Chapter 12-7 Reasons Females are Crowded into the Secondary Market  Prejudice and exclusion  Immobility  Poor working conditions  absenteeism and  wages  Female attitudes on labour market worth  Female preferences - willing or imposed

8. © 2002 McGraw-Hill Ryerson Ltd.Chapter 12-8 Noncompetitive Theories of Discrimination  Wage differentials are inconsistent with market theory  Persistence due to  costs of adjustment  imperfect information  queuing theories

9. © 2002 McGraw-Hill Ryerson Ltd.Chapter 12-9 Noncompetitive Theories  Government  Trade unions  Employers  Monopsony  Systemic Discrimination

10. © 2002 McGraw-Hill Ryerson Ltd.Chapter 12-10 Productivity Differences: Choice or Discrimination  Dual role  unable to recoup costs of human capital formation  Intermittent labour market time  prevents them from acquiring continuous labour market experience  Discrimination  in the borrowing to finance human capital  External pressures  close off avenues of capital formation

11. © 2002 McGraw-Hill Ryerson Ltd.Chapter 12-11 Evidence on Male-Female Earning Differentials  Pure wage gap exists due to discrimination  Factors outside the labour market impact inequity  Occupational distribution  Industry distribution

12. © 2002 McGraw-Hill Ryerson Ltd.Chapter 12-12 Policies to Combat Sex Discrimination  Conventional Equal Pay  deals only with wage discrimination within the same job within the same establishment  Equal Value, Pay Equity or Comparable Worth  value procedures an important component  Equal Employment Opportunity-may benefit new recruits  Affirmative Action/Employment Equity  Facilitating Policies

13. © 2002 McGraw-Hill Ryerson Ltd.Chapter 12-13 Equal Value Procedures  Equality of pay between jobs of equal value  Value determined by job evaluation scheme free of gender bias  Comparisons between jobs that are predominantly male and predominantly female  Rationale-deals with both wage discrimination and occupational segregation

14. © 2002 McGraw-Hill Ryerson Ltd.Chapter 12-14 Rationale and Scope  Deals with both wage discrimination and occupational segregation  Scope  Complaint based system  Comparisons can only be made within the same establishment

15. © 2002 McGraw-Hill Ryerson Ltd.Chapter 12-15 Impact of Policy Initiatives  Canada  policies of “equal pay for equal work” have not had any impact  Britain has been more successful  When it is incorporated into collective bargaining  Equal pay and equal employment studies are inconclusive

16. © 2002 McGraw-Hill Ryerson Ltd.Chapter 12-16 Impact of Policies  Affirmative Action  U.S. shows benefits to minority groups targeted at the expense of other minority groups  Comparable Worth/Pay Equity  Can close a portion of the overall gap within particular elements of the public sector

17. © 2002 McGraw-Hill Ryerson Ltd.Chapter 12-17 End of Chapter Twelve