Exam 19: Earnings and Discrimination

Which of the following is an example of labor-market discrimination? You may assume that worker A and worker B have identical characteristics except for the ones listed. A firm offers a higher salary to worker A than worker B because worker A

Given that the median male is better paid than the median female, which of the following is a valid explanation for wage differences?

The National Collegiate Athletic Association (NCAA) has long argued that nationally-prominent college athletes are compensated with an investment in human capital that far exceeds the monetary reward of playing professional sports. Examine this argument in light of your knowledge of human capital theory and the economic theory of labor markets.

Scenario 19-5 Jason works part-time at a grocery store after school. Jason has worked at the store for two years but still hasn't received a wage increase, even though newer employees have received raises. Jason has threatened his employer with a lawsuit if he doesn't get a raise in the next few weeks. Jason believes he is a victim of labor-market discrimination. -Refer to Scenario 19-5. In a competitive market for grocery store employees, why might Jason's wage differential persist?

The human-capital theory of education maintains that workers who complete specific levels of education enhance their productivity through education.

Explain why the following situation is likely to persist: soccer players in Europe are the highest paid athletes and in the US they are among the lowest paid athletes.

If people with blue eyes earn more than people with brown eyes, we have proof of discrimination against people with brown eyes.

Jen is a waitress, and she gets paid an additional $2.00 per hour for agreeing to work on Valentine's Day. Jamie is also a waitress, but she did not work on Valentine's Day and hence did not get the extra $2.00 per hour. This difference in pay is an example of differences in human capital.

Since people get sick at all hours of the day, some nurses who work in hospitals are required to work the night shift. In most cases, the nurses who work the night shift earn a higher hourly wage for the same work as the nurses who work the day shift. This difference in pay is referred to as a

Streetcar owners in the early 20th century were against segregation for profit maximizing reasons.

The example of segregated streetcars in the southern United States in the early twentieth century is one example of

Figure 19-6​ -Refer to Figure 19-6. This figure depicts labor demand and supply for the widget industry. The equilibrium market wage is $15. Suppose a labor union forms and subsequently negotiates an hourly wage of $20.00. Which of the following statements about the impact of the union's formation on labor hours demanded is true?

Most economists believe that the higher average salaries earned by men in comparison to women arise from

Matthew just graduated from culinary school. He can earn $40,000 a year working for the same local bakery he has worked at since before starting culinary school, or accept a job offer he received after graduation from a high-end restaurant paying $70,000 a year. The higher salary is a result of

The case study of segregated street cars in southern cities illustrates which of the following?

Figure 19-2 -Refer to Figure 19-2. This figure depicts labor demand and supply in a nonunionized labor market. The original equilibrium is at $10. If a labor union subsequently establishes a union shop and negotiates an hourly wage of $12.50, then employment is

When employers pay an efficiency wage above the market equilibrium wage, this will likely result in

It is illegal in the United States for firms to pay different employees different wages for doing the same job.

Over the last several years, the earnings gap between workers with college degrees and workers with high school degrees has

After an employer pays the cost of educating a worker,