ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Statistical discrimination or "rational discrimination" means the following:
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Statistics regarding discrimination is routinely falsified.
When the statistical concept of "averages" is used to set higher auto insurance rates for a 19-year-old than for a 40-year old, even if the 19-year old is a better driver than the 40-year old one.
Statistics are routinely used selectively with the specific purpose of discriminating against ethnic minorities.
It is discriminatory to use statistics to understand social conditions.
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- In 2006, Evo Morales assumed the presidency in Bolivia, a South American country in which official commerce is done in Spanish. Morales was the first Bolivian president of indigenous decent. As president, he quickly instituted reforms that were designed to reduce discrimination against indigenous populations with the aim of eventually reducing inequality. Suppose discrimination before Morales took two forms: discrimination in education by not providing state funds to educate all children (and particularly not educating indigenous children in Spanish) and discrimination in the job market by firms not willing to hire indigenous workers.a. In terms of education, which policy do you think would be more successful at combating discrimination and inequality: (1) providing state funds to educate all people exclusively in their native languages or (2) providing state funds for a public education system that requires all people to learn Spanish, as well as a second, indigenous language? Why?b.…arrow_forwardThe act of Congress requiring the federal government to hire well-qualified public servants in 1883 wasarrow_forwardD.28.arrow_forward
- In the absence of any legal barriers on immigration from Neolandia to the United Kingdom, the economic conditions in the two countries generate an immigrant flow that is negatively selected. In response, the United Kingdom enacts an immigration policy that restricts entry to Neolandians who are in the top 10 percent of Neolandia’s skill distribution. What type of Neolandian would now migrate to the United Kingdom ?arrow_forwardGerhart & Newman (2020) discuss how compensation (pay) may be a measure of justice, i.e., gender, race, culture, etc. They further state that stockholders are interested in executive pay. Why does it matter, and how is it fixed? How risky are these decisions to employee retention?arrow_forward
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