HW_C12 - Cha$%er ender/ace and E%hnici%y in%he Labor Marke This chapter represents a comprehensive inquiry into wage differentials across gender

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+ender, /ace, and E%hnici%y in %he Labor Marke% This chapter represents a comprehensive inquiry into wage differentials across gender, racial, and ethnic groups. It begins with a section on earnings differences by gender, in which the overall differential is broken into two parts: that associated with measurable productivity differences and that associated with unobserved (unexplained) differences. The latter differences are associated with (but not confined to) current market discrimination. Discrimination is defined and problems of its measurement are discussed in the context of analyzing gender differences in earnings. Black-white earnings differentials are analyzed next in a subsection that includes a brief treatment of differences in the ratios of employment to population. Earnings by ethnicity are also discussed. In each case, the analysis includes a review of attempts to estimate the effects of discrimination, with special emphasis on the effects of such hard-to-observe factors as English language proficiency, cognitive achievement, and school quality. The second major section of the chapter analyzes theories of market discrimination. Becker’s theories of employer, customer, and employee discrimination are discussed, and the theory of statistical discrimination is explained, along with noncompetitive models of discrimination (occupational crowding, dual labor markets, search-based monopsony, and theories involving collusive action). The chapter concludes with in-depth discussions of governmental efforts to reduce or eliminate market discrimination: the Equal Pay Act of 1963 and the Civil Rights Act of 1964. Included in our discussion of the last are the evolution of the disparate impact standard by the courts (as opposed to a disparate treatment standard), legal decisions involving seniority, and the emerging comparable worth remedy. The chapter closes with an analysis of the federal contract compliance program, including the standards against which affirmative action plans are judged and the results of studies that have tried to assess the effects of the program. The appendix to Chapter 12 contains an introduction to the problems of estimating comparable worth “earnings gaps.” The purpose of this appendix is twofold: to give students a brief illustration of the use of regression analysis and to show them how comparable worth comparisons are made. ! List of Major Concepts 1. Income disparities between men and women may have their roots in different incentives to acquire productive characteristics. 2. Current labor-market discrimination is said to exist when the market places values on personal characteristics of workers that are unrelated to productivity. 3.
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This note was uploaded on 12/04/2008 for the course ECONOMICS 4310 taught by Professor X during the Spring '08 term at University of Texas at Dallas, Richardson.

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HW_C12 - Cha$%er ender/ace and E%hnici%y in%he Labor Marke This chapter represents a comprehensive inquiry into wage differentials across gender

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