Economics: Private and Public Choice (MindTap Course List)
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506725
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
Question
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Chapter 26, Problem 4CQ

(a):

To determine

Discrimination against the minority employees and its impact.

(b):

To determine

Differences in the wages, and employment discrimination.

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Students have asked these similar questions
Most studies indicate that women earn 82% of what men earn. Does this necessarily reflect discrimination or might there be other factors that could explain the difference? Be specific about what those factors are if any.
Consider discrimination in employment. Suppose dark-haired employees don't like working with blonde employees. Could this discrimination explain lower wages for blond employees? If such a pay differential existed, what would an entrepreneur who wants to maximize profits do? If there were many entrepreneurs with the same strategy, what would happen over time?
Women earn less on average than men. Which of the following would be the logical conclusion? Women must be the victim of employment discrimination. Men must be more highly motivated and materialistic. Women must be less productive. O Without consideration of preferences and productivity factors, differences in unadjusted mean earnings do not necessarily reflect employment discrimination.
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