Exam 19: Earnings and Discrimination

Suppose that Philip is the best contractor in town,and he makes $400,000 a year.Suppose that Julia Roberts is the best and highest paid actress in Hollywood,and she makes $13 million per movie.Both are the best in their respective fields of work.One reason for the significant difference in incomes has to do with the nature of the service each offers.Philip's contracting services

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 point A.If a labor union subsequently establishes a union shop and negotiates an hourly wage of $20,then there will be an excess

Scenario 19-5 Billy works for the local piano moving company part-time after school. Billy has worked for the company for two years but still hasn't received a wage increase, even though newer employees have received raises. Billy has threatened his employer with a lawsuit if he doesn't get a raise in the next few weeks. Billy believes he is a victim of labor-market discrimination. -Refer to Scenario 19-5.Which of the following statements would weaken Billy's case against his employer?

A signaling theory of education suggests that

Studies of wages by labor economists indicate that measurable variables such as age,job characteristics,years of education,and years of experience account for

One example of labor-market discrimination is that firms may be less likely to interview job-market candidates whose names suggest that they are members of a racial minority.

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

Evidence from a 1960s study of the market for baseball players

Which of the following statements is not correct?

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

Which of the following statements is not correct?

Figure 19-1 -Refer to Figure 19-1.Some policymakers have argued that the government should establish a "living wage." A living wage would provide workers a reasonable standard of living in their city or region.If a living wage of $10 per hour is established in the market pictured here,we would expect

If there is systematic discrimination against a group of workers,then the wage paid to those workers likely will be

The statement "the rich get richer and the poor get poorer" is evident in the fact that

Effective minimum-wage laws will most likely result in (i) an increased demand for labor. (ii) a surplus of labor. (iii) higher incomes for all unskilled workers.

Factory workers who work the day shift earn less per hour than similarly-skilled factory workers who work on the night shift.The difference in pay is attributed to

The difference in wages paid to major-league baseball players and minor-league baseball players is most likely due to

Explain the role of job experience in explaining the differences between the average wages of men and women.

Park rangers at Yellowstone National Park are known to have low wages.This is probably because

If employers are profit-maximizers,then