Exam 19: Earnings and Discrimination

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

Which argument likely reflects the statement "Public school teachers are paid less than engineers,but have similar amounts of education"

If empirical tests of the human-capital theory find conclusive evidence that education enhances productivity,then what would optimal public policy suggest

Liberal arts majors are typically told that a liberal arts degree "does not restrict one's ability to find successful employment in business." This statement is likely to reflect a philosophy that a liberal arts degree is valuable for what reason

The statement "The rich get richer,and the poor get poorer" is supported by evidence of an expanding wage gap between high-skill and low-skill workers.

Scenario 19-3 Ethan works for the local piano moving company part time after school.Ethan has worked on the job for a couple of years but still hasn't received a wage increase even though newer employees have received raises.Ethan has threatened his employer with a lawsuit if he doesn't get a raise in the next few weeks.Ethan believes he is a victim of labour-market discrimination. -Refer to Scenario 19-3.In a competitive market for piano movers,which statement would NOT explain why Ethan's wage differential persists

List the factors that can contribute to gender wage gaps in the competitive market.Could the gap disappear over time