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CECN640 - Discrimination and Male

CECN640 - Discrimination and Male - Discrimination and...

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Discrimination and Male-Female Earnings Differentials (Chapter 12) Highlights 1. The underlying objective is to explain the nature of wage differentials. In this chapter, the relevant factors are the observable traits of gender and race. Wage levels do differ systematically, and this may well be due in part to discrimination in the labour market. However, the existence of a wage differential is not necessarily prima facie evidence of discrimination 2. A major concept that underlies the analysis in this chapter is the critical distinction between wage-determining attributes, such as the length of job market experience or the level of education, and the rate at which these attributes are remunerated. When the returns (in the form of wage increases) to human capital are lower for women (or certain racial groups) than for men (or other societal groups), there may be a case for discrimination. You can think of the first element as the qualifications that a worker has and the job description, and the second element as the pay scale. (1) Discrimination: Reasons and Sources 1. According to pure neo-classical labour market theory, discrimination (either through
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