The existence of economic discrimination and its impact on wages.

Question

Want to see the full answer?

Answer 1

Question

Chapter 17, Problem 17.4.12PA

To determine

The existence of economic discrimination and its impact on wages.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

The U.S. Bureau of the Census reported that, on average, white men earn $50, 945, whereas white women earn $31,008. Economic discrimination explains at least some of this wage gap, but economists think that there are other factors that also contibute to wage gaps. Which factor is not an explanation offered by economists for these types of wage gaps? Various groups in the population graduate from college at varying rates. Differences in earnings can be explained in part by differences in educational attainment. Men and women take different types of jobs. Men are more likely to prioritze jobs with higher wages, and women are more likely to prioritize jobs with other desirable characteristics. On average, men and women have different amounts of experience in their jobs. Ceteris paribus, men are less likely to temporarily leave the workforce and, therefore, have more experience than women. There are innate differences between men and women that make men more productive than women. Because…

Suppose there are two occupations: nurses and doctors. Draw hypothetical supply and demand graphs for male and female workers to both occupations assuming that some of each prefers each job. Now, assume that medical school admissions officers assume that women are unqualified to be doctors so all women find work as nurses. Show the effects of discrimination on your graph.

Suppose male wages are determined by the earnings function WM = 25 + 0.40EM and female wages are determined by the earnings function WF = 15 + 0.20EF. If women have 10 years of experience and men have 20, what is the gender wage gap? How much can be attributed to human capital differences and how much is unexplained, and therefore attributed to discrimination? Show this scenario on a graph of both the male and female earnings functions