Exam 20: Earnings, Unions and Discrimination

Both Lee and John have got a business degree from a university.They both got jobs as research analysts in the same firm.Two years later Lee is earning more money than John.This wage difference is likely caused by:

Comparable worth In response to the gender gap, some states and countries have experimented with comparable worth regulations.This tries to close the wage gap by requiring employers to pay people doing jobs of comparable worth the same income.Hence, if firemen get paid more than librarians, but regulators deem that the jobs are of comparable wealth, then wages of librarians would have to rise to match firemen.Advocates of comparable worth policies believe that compensating differentials do not explain differences in wages of men and women.One potential critique this principle of comparable worth is that:

Unions are a type of cartel.

Evidence of discrimination in labour markets:

The alternative to human capital theory that explains why people invest in education argues that:

Compensating differentials are differences in wages that arise from non-monetary characteristics of different jobs.

Suppose a forestry firm increases its investment in new technology for its sawmills.The firm employs both skilled and unskilled workers.After this new investment the wage gap between skilled and unskilled workers:

Trade unionisation rates in Australia have been:

Most workers in the economy earn a wage that is:

Efficiency wages are above-equilibrium wages paid by firms to encourage productivity and decrease worker turnover.

Economists are skeptical about the idea that discrimination is employer-driven for which of the following reasons?

Which of the following statements represents the idea behind signalling in education?

Which of these theories would support the idea that increasing educational levels for all workers would raise all workers' productivity and thereby their wage?

Evidence of differences in average wages of Aboriginal workers compared to white workers:

Professors often have similar levels of education to lawyers and doctors, but typically get much lower salaries.This difference in income is likely to mean that:

Empirical work that does not correct wages for differences in productivity of workers is likely to:

When wage differentials are observed in competitive labour markets, the neoclassical theory of labour markets would predict:

Advocates of comparable worth would agree with which of the following statements? (i) compensation should be based on a set of impartial criteria (ii) wages earned by women are the same as those earned by men who have the same level of training and education (iii) occupational wage differences are discriminatory against women

Which of the following theories suggests that education makes workers more productive and therefore able to earn a higher wage?

When an employer pays the cost of educating a worker, it is likely that: