LABOR ECONOMICS
8th Edition
ISBN: 9781260004724
Author: BORJAS
Publisher: RENT MCG
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Chapter 9, Problem 1P
To determine
Determine the discriminatory hiring practice using the difference-in-difference estimator.
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In the middle of each month, the statistical office of Urbanville takes a sample survey of 2,000 people over the age of 16, to determine their labor force status in the previous week. Each respondent is allocated to one of these categories:
a) Worked full-time for wages or salary
b) Worked part-time for wages or salary
c) Self-employed
d) Did not work for pay, but looked for work
e) Did not work; did not look for work because she thought jobs were not available
f) Did not work for pay because she did not want to
The results for the second half of 2010 were
July August September
a) 901 885 868
b) 150 160 170
c) 200 198 196
d) 72 78 85
e) 32 35 38
f) 645 644 642
For each month, calculate and fill in the table below.…
Foreign workers that migrate to the US both supply
their labor in their occupational labor market and
demand products from firms that in turn hire
workers from other occupational labor markets.
The typical occupational labor market in the US
consists of 16% foreign-born workers and 84% US-
born workers. According to the BLS, 58% of Drywall
Installers are foreign born and 9% of Secretaries
are foreign born.
Which of the occupations have experienced a
decrease in wages as a result of the county's
immigration pattern?
Question 12 options:
Drywall Installers only
Secretaries only
Both Drywall Installers and Secretaries
Neither Drywall Installers or Secretaries
Announcers present music, news, and sports, and may provide commentary or interview guests about these or other important topics. Some act as masters of ceremonies (emcees) or disc jockeys (DJs) at weddings, parties, or clubs.
Many announcers work in radio and television studios. Some announcers are self-employed; others work part time. The median annual wage for announcers was $29,010 in May 2014.
A newscaster earns $33,900 and wants to invest 10% of his/her monthly salary to save for retirement in 22 years. If he/she invests this money at 3.3% compounded monthly, how much money will he/she have at retirement?a) How much will be saved each year?$b) What will be the monthly deposit?$c) What will be the amount in the account after 22 years?$
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- The Ames Riders, a women’s professional basketball team, employs a head coach and two assistant coaches. The total number of employees of the team (including players) is 20. The head coach, a male, is known for his off-color sense of humor. He has been known to make remarks to the two assistant coaches regarding their marital and sex lives. This activity has not been frequent, but it has occurred more than once. However, there has been no evidence of any other acts and no evidence that the assistant coaches suffered in their employment. Each has been with the team for five years and has received raises and bonuses in each year of employment with the Riders. Both of the assistant coaches have complained to you (a group who ensures that the team uses proper workplace practices). You, the members of the committee, have to decide on the following: Did sex discrimination occur? Why or why not? Did sexual harassment occur? Why or why not? What actions would you take against the head coach…arrow_forwardIf one worker can pick $10 worth of grapes and two workers together can pick $24 worth of grapes, the Multiple Choice marginal revenue product of the second worker is $14. marginal revenue product of each worker is $17. data given are insufficient to determine the marginal revenue product of either worker. marginal revenue product of the first worker is $14.arrow_forwardMP believe that there is a causal relationship between earnings and years of schooling. They show you an estimate of the impact of years of schooling on annual earnings: There are two groups of individuals – group 1 and group 2. Group 1 on average earns £60,000 per year with the average level of post-compulsory education of 6 years, while group 2 earns on average £40,000 with the average post-compulsory education of 4 years. The MPs conclude that the annual return to an additional year of education is 25% using the following equation [(£60,000-£40,000)/40,000]/(6-4)=25%. Ignoring time preferences and discounting, and if both groups face the same cost of schooling, you need to explain to the MPs why this is not a good estimate of the annual return to an additional year of education. Propose methods to the MPs to deal with the problemarrow_forward
- Problem is given: Out of a total number of 10,000 candidates who applied for jobs in a government department, 6,854 were males, 3,146 were graduates and others, non-graduates. The number of candidates with some experience was 2,623 of whom 1,860 were males. The number of male graduates was 2,012. The number of graduates with experience was 1,093 that includes 323 females?arrow_forwardSuppose a worker’s skill is captured by his efficiency units of labor. The distribution of efficiency units in the population is such that worker 1 has one efficiency unit, worker 2 has two efficiency units, and so on. There are 100 workers in the population. In deciding whether to migrate to the United States, these workers compare their weekly earnings at home ( w0) with their potential earnings in the United States (w1).The wage-skills relationship in each of the two countries is given byw0 = 700 + 0.5sandw1 = 670 + swhere s is the number of efficiency units the worker possesses.a. Assume there are no migration costs. What is the average number of efficiency units among immigrants? Is the immigrant flow positively or negatively selected?b. Suppose it costs $10 to migrate to the United States. What is the average number of efficiency units among immigrants? Is the immigrant flow positively or negatively selected?arrow_forwardIn 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_forward
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