Exam 19: Earnings and Discrimination.

Since measurable factors such as years of experience and years of education do not explain a large portion of the variation in wages,ability,effort,and chance must play a significant role in determining wages.

George and Brad are waiters at a local restaurant.The female customers think that George is better looking than Brad.If George earns more than Brad,this could be an example of each of the following except

A compensating differential refers to a difference in wages that arises from nonmonetary characteristics.

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

John has financial assets totaling $1.5 million,and he plans to use these assets to start his own business.Since John owns these funds and will not need to borrow to start his business,these assets are considered human capital.

The belief that education makes a person more productive and thereby raises his or her wage is referred to as the

In the country of Freedonia,men and women have the same level of education and choose different forms of work in the same proportions.The only real difference is that men typically stay home to raise young children,returning to the work force after their children enter elementary school.If no discrimination exists,then we would expect that,on average,

In determining wages,ability,effort,and chance

Economists generally agree that

A study by labor economists Hamermesh and Biddle found that

Explain the role that consumers play in perpetuating discrimination in labor markets.

Discrimination may persist even in competitive markets when the source of the discrimination is

Explain the theory that education acts as a signaling device.How does this contrast with the theory of education as an investment in human capital?

Which of the following explains the "beauty premium" differences in wages?

Which of the following is an example of a compensating differential?

The market wage could be higher than the equilibrium wage if a worker

Which of the following can be used to help explain wage differences among different groups of workers?

A consensus view among economists regarding the possibility of labor-market discrimination is that

Store clerks are known to have low wages.This is likely to reflect the fact that

Attributing the gender wage gap to ongoing discrimination by employers will likely be incorrect because