Exam 19: Earnings and Discrimination

Politicians often point to wage differentials as evidence of labor-market discrimination against ethnic minorities and women; however, economists argue against this approach because people differ in the amount of human capital they have and the kinds of work they are willing and able to do.

Among male workers over age 25, about what percent has a college degree? What is this percentage for black male workers over age 25?

Which of the following factors does not affect the value of a worker's marginal product?

Suppose that the country of Libraria made a concerted effort to increase the educational level of its people. If this effort had no effect on the wages of its workers, one might consider this as evidence in support of

Assuming that all other things are equal, including the wage, which of the following statements is correct?

Figure 19-1 -Refer to Figure 19-1. If the minimum wage in this market is $8, then

Sometimes wages are set above the equilibrium level when firms pay

The signaling theory of education suggests that when people earn a college degree they do not become more productive, but they do signal their high ability to prospective employers.

Name two occupations that have the two characteristics required for the superstar phenomenon.

Which of the following is the most likely outcome of raising the minimum wage?

Politicians often point to wage differentials as evidence of labor market discrimination against ethnic minorities and women. Economists, however, argue against this approach because

Which of the following theories would suggest that attending school does not improve productivity but that high-ability people are more likely to stay in school?

Which of the following would be considered an investment in human capital?

Economists typically explain occupational differences between men and women through preferences, ability, and discrimination. What additional factor did economists Muriel Niederle and Lise Vesterlund add to this list?

Minimum wage laws

In the early 20th century, streetcars in many southern cities required that white passengers sit in the front of the car while black passengers sat in the back. The firms that ran the streetcars were

Dan and Dave are both college graduates. Dan is a patrolman and Dave is a detective in the same police precinct. While Dan's job is inherently more dangerous than Dave's, Dave passed a difficult exam to gain promotion to detective. Dave earns more than Dan because

When discrimination occurs as a result of employer prejudice, discriminating firms do not maximize profits.

If the signaling theory of education is correct,

A college degree makes a person more productive according to