Exam 19: Earnings and Discrimination

Table 19-1 Source: US Census Bureau and Mankiw's calculations -Refer to Table 19-1. Economists suspect that the increase in the earnings gap between skilled and unskilled workers is likely due to

Sometimes wages are set above the equilibrium level when firms pay

As a result of an increase in the earnings gap between skilled and unskilled jobs, the incentive to get a college education has been declining.

White women earn an average of 25% less than white men. A labor economist who wants to investigate whether the differences in earnings indicate labor-market discrimination against women should consider whether white men and women have similar

Which of the following represents an example of labor-market discrimination?

Scenario 19-6 Suppose that in the competitive market for auto repair, firms prefer to hire men rather than women. Assume that the women applying for positions have the same skills, experience, and work ethic as the men. As a result of this discrimination, the demand for women is lower than it otherwise would be. -Refer to Scenario 19-6. Suppose that consumers prefer to have men work on their auto repairs and are willing to pay higher prices to accommodate these preferences. What will happen to the wage differential between men and women?

When robots are used to replace workers on a factory production line, the wage gap between skilled and unskilled workers

Scenario 19-5 Jason works part-time at a grocery store after school. Jason has worked at the store for two years but still hasn't received a wage increase, even though newer employees have received raises. Jason has threatened his employer with a lawsuit if he doesn't get a raise in the next few weeks. Jason believes he is a victim of labor-market discrimination. -Refer to Scenario 19-5. In a competitive market for grocery store employees, why might Jason's wage differential persist?

Al and Steve are both reporters at the same newspaper. Al is black and Steve is white. Al earns less than Steve. Which of the following can explain why Al earns less?

According to a study of the "beauty premium," how do the wages of people with average looks compare to those of people considered less attractive than average?

Certain factors that are probably important in determining wages are nevertheless difficult to measure. Consequently, labor economists find those factors difficult to incorporate into their studies of labor markets and wages. Those factors include

Some economists are skeptical of the argument that employers are responsible for discriminatory wage differences. They argue that market economies provide a natural remedy to employer discrimination, and that remedy is

Which of the following moves the wage above its equilibrium value?

Labor-market discrimination is evident when

Offering different opportunities to similar individuals who differ only by race, ethnic group, sex, age, or other personal characteristics is called

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.

Figure 19-7 -Refer to Figure 19-7. The figure shows labor demand and labor supply in a non-unionized labor market. Suppose the current labor demand is D1 and the current labor supply is S1. If a firm in this market decided to pay its workers $18 per hour to increase the productivity of its workers, this firm would be paying a(n)

Which of the following would both make a worker's wage higher than otherwise?

That some schools direct females away from science and math courses is evidence of

Figure 19-6 -Refer to Figure 19-6. Given demand, D1, and supply, S1, how much more do workers earn per hour if the supply curve shifts to S2?