lec18_inequality

lec18_inequality - Chapter 14: Labor Markets, Poverty, and...

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Chapter 14: Labor Markets, Poverty, and Income Distribution D. Determinants of wages 1. Wages when all people have same abilities and same interests and all jobs look alike 2. Wages when some people are unable or unwilling to do certain jobs 3. Wages when some people are restricted from doing certain jobs E. Discrimination
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Median Weekly Earnings: white men: $747 white women: $589 black men: $529 black women: $512 Source: BLS, “Usual Weekly Earnings” Could such differences be explained by differences in human capital or work preferences?
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Fraction of population with bachelor’s degree or higher: whites: 27.6% blacks: 17.3% Source: US Census Bureau, Educational Attainment in the United States: 2003
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Average hours worked per week: men: 41.6 women: 35.9 Source: BLS, “Characteristics of the Employed”
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However, some differences persist even when we compare people of same observable characteristics Some economists argue that this is just because many of the differences in human capital or preferences for type of work are not measured accurately
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who would contribute the same VMP to the firm, but one would cost the firm 20% less than the other. Then the firm could make more money by
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This note was uploaded on 04/19/2010 for the course ECONOMICS econ 2 taught by Professor Nieta during the Spring '10 term at UCSD.

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lec18_inequality - Chapter 14: Labor Markets, Poverty, and...

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