ion 12 An example of compensating differential is workers in a dynamite mine earning higher than similarly skilled workers in another industry. O a. Ob graduates from more reputed colleges earning a higher starting salary than graduates from less known schools. nurse anesthetists being paid less than anesthesiologists (who have a medical degree). C. O d. among Hollywood stars, George Clooney making more money than William Fichtner

ion 12 An example of compensating differential is workers in a dynamite mine earning higher than similarly skilled workers in another industry. O a. Ob graduates from more reputed colleges earning a higher starting salary than graduates from less known schools. nurse anesthetists being paid less than anesthesiologists (who have a medical degree). C. O d. among Hollywood stars, George Clooney making more money than William Fichtner

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Determine which of the three principle sources of wage differentials is most likely to account for each scenario. * A licensed physician earns more than a nurse: differences in total human capital compensating differentials differences in talent or ability * City sanitation workers earn more than park maintenance workers: compensating differentials differences in talent or ability differences in total human capital * Physical therapists earn more than massage therapists. differences in talent or ability compensating differentials differences in total human capital * Jack, a 22-year-old soccer player, earns more than Jim, who is the same age and has the same level of experience. compensating differentials differences in total human capital differences in talent or ability
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Q3. Study Appendix Determining Adverse Impact. Textbook typo: Step D Since 53.8% is less than four-fifths, or 80%, adverse ímpact is indicated. Step 1: Calculate the rate of selection for each group Groups Job applications Number hired Selection rate % hired White 50 12 ?% Black 80 8. ? % Hispanic 200 50 ? % Step 2: Which group has the highest selection rate? The group with the highest selection rate is Step 3: Calculate the two impact ratios. Step 4: Is adverse impact indicated for the other two groups and why?
What is meant by the terms “investment in human capital” and “compensating wage differences”? Use these concepts to explain wage differentials.
Figure 15: Returns to HE for men in work by subject and age Business Economics Engineering Communications Creative Arts Law Medicine English Age 30 Age 50 95% Cls Age 40 Age 60 It shows the returns to getting a degree in different subjects relative to the average wage of men who did A-levels but did not go to university. The new Minister of Universities has some ideas. She suggests: (a) Charging people who who get a 60% wage premium (eg women doing Economics) higher tuition fees (b) Charging people who get less than a 40% premium higher tuition fees (c) Charging everyone higher tuition fees. Evaluate each of these proposals in light of the competitive labour market model (holding labour demand constant). Do you think the proposal is a good idea? Why or why not? What will the effect be on the supply of different types of labour (eg non-graduates, female economists) resulting from each and thus on the wages people receive. Earnings Difference in Percent O 20 40 60 80 100120140
The figure compares the compensation that a shoe salesperson receives if she is on a straight salary of $40 per day or if she receives a commission of $5 for each pair of shoes sold. 100- Commission 90- Which compensation structure is preferred by the salesperson? 80- Suppose the salesperson sells more than 8 pairs of shoes per day and only cares about compensation. 70 60- For the salesperson, the is preferred. 50- Salary 40- 30- 20- 10 10 12 14 Pairs of shoes per day 16 18 20 Compensation received per day
Which of the following is the BEST example of monopsony employer? a.Hiring of book keepers by companies b.Hiring of astronauts by space stations c.Hiring of cashiers by drug stores d.Hiring of chefs by hamburger joints
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Why do economists study sports teams when looking for evidence of labor-market discrimination? Select one: a. because all four United States professional sports leagues (football, basketball, hockey, and baseball) require discrimination studies every five years b. because the salaries paid to professional athletes exhibit the superstar phenomenon, which is highly correlated with discrimination c. because nonwhites comprise a majority of starters for many professional sports teams d. because the wide availability of performance statistics allows economists to control for individual player productivity in ways that are difficult to do for other types of firms
Becker argued that discrimination is economically detrimental to all parties and will be eliminated by the market. discrimination is only economically detrimental to the employee but will never be completely eliminated by the market. discrimination is economically detrimental to all parties but will never be completely eliminated by the market. O discrimination is only economically detrimental to the employee and will be eliminated by the market.
Attributing the gender wage gap to ongoing discrimination by employers will likely be incorrect because O a. some of the wage gap is explained by efficiency wages. b. differences in years of work experience likely lead to productivity differences between men and women. O c. compensating differentials usually lead to higher wages for women. Od. All of the above are correct.