Exam 19: Earnings and Discrimination

Which of these instances would constitute labor-market discrimination? Pat receives a higher wage than James.Pat and James are identical in all of their labor-market characteristics except that

If the signaling theory of education is correct,then education is correlated with higher earnings because people with higher levels of education are more productive.

Men and women tend to choose different types of occupations,and so

Over the last 20 years or so,the earnings gap between workers with college degrees and workers with high school degrees has

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

Scenario 19-4 Assume that the labor market for barbers is competitive and that it is differentiated into two groups: barbers who are bald (or going bald)and those who have a full head of hair.Assume that the barbers in this market have identical hair-cutting ability,regardless of whether they are bald or not.Currently the equilibrium wage in the bald barber market is lower than that in the nonbald market.Further assume that the market for haircuts is competitive. -Refer to Scenario 19-4.If consumers do not discriminate between bald barbers and barbers with hair,then

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

Which of the following statements is correct?

Scenario 19-4 Assume that the labor market for barbers is competitive and that it is differentiated into two groups: barbers who are bald (or going bald)and those who have a full head of hair.Assume that the barbers in this market have identical hair-cutting ability,regardless of whether they are bald or not.Currently the equilibrium wage in the bald barber market is lower than that in the nonbald market.Further assume that the market for haircuts is competitive. -Refer to Scenario 19-4.If some consumers in the market for haircuts have a strong preference for having their hair cut by a barber who is not going bald,then

In general,the higher a person's education level,

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.Why might an economist be skeptical of Billy's discrimination complaint?

Above-equilibrium wages caused by efficiency wages will most likely result in

A computer is an example of productivity-enhancing human capital.

If an employer pays a man a higher wage than a woman,the employer

People are willing to invest in human capital because

If a worker is indifferent between a job with a wage of $12 per hour and a job with a wage of $15 per hour,then the

Evidence of differences in average wages of black workers compared to white workers

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.In a competitive market for piano movers,why might Billy's wage differential persist?

The ownership of human capital

The case study of segregated street cars in southern cities illustrates which of the following?