LABOR ECONOMICS
8th Edition
ISBN: 9781260004724
Author: BORJAS
Publisher: RENT MCG
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Chapter 9, Problem 3P
To determine
Identify the type of discrimination.
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Economic theory suggests that the consumer prejudice explanation for discrimination means that consumers will have to pay more to be served by employees of a specific group.
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"Discuss the Implications of Employer Discrimination for the Hiring Decisions of the Firm."
Florida has decided to eliminate occupational licensing requirements for lawyers, so you don't have to go to law school to practice law. The demand for legal services will, therefore, increase. Draw a graph consistent with your answer.
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- What steps are taken when the supply of employees is predicted to be greater than demand?arrow_forwardAfter hiring the third emplyee, John was able to produce 110 units instead of 80 units without the third employee. The price of each unit is $10. What is the Marginal Revenue Product of the third employee. $800 $1100 $3000 $1900 Not Enough Informationarrow_forwardEconomic discrimination takes place when an employer pays workers the lowest wage possible. pays workers different wages on the basis of some arbitrary characteristics of workers that are irrelevant to the job performed. pays lower wages to workers who are not as productive as other workers. pays workers compensating wage differentials.arrow_forward
- Which of the following statements is not correct? a) Competitive markets tend to limit the impact of discrimination on wages. b) Differences in earnings of whites and blacks or men and women provide clear evidence of discrimination. c) Some differences in earnings are attributable to discrimination based on race, sex, or other factors. d) Profit-maximizing behavior can reduce discriminatory wage differentials.arrow_forwardthe Equal Employment Opportunity Commission (EEOC): is a federal agency established by the Rehabilitation Act of 1968. publishes guidelines for the public sector to assist businesses in deciding what employment practices are lawful or unlawful. enforces civil rights in the workplace. investigates complaints filed by employers who believe they are victims of unlawful discrimination. does not have the right to file charge against an employer even if it believes that an unlawful discrimination has taken place.arrow_forwardExplain why market forces are likely to eliminate discriminationarrow_forward
- Reframe the theory of employment discrimination in light of behavior over time data.arrow_forwardWhen testing for wage discrimination based on race, which of the following variables are control variables? A wage and race B experience and performance C experience and race D performance and race E wage and experiencearrow_forwardAccording to the Economics Policy Institute (Mishel and Wolfe, 2019) CEO pay has grown 940% since 1978 while the compensation of the average worker has only risen 12%. While you can easily find sources that provide statistics that conflict with these numbers, you would be hard pressed to find any credible source that refutes the idea that the rate of pay of CEO’s and other upper-level managers has not dramatically increased relative to an organization’s lower-level employees in just about any 10 or more year period over the past 60 years. In the world of Adam Smith, the “invisible hand” of the free market capitalistic model would address inequities/out of balances. Are the forces represented by the “invisible hand” working? Why or why not? Is there an ethical dimension to the discussion of upper-level manager compensation? Why or why not? How does (or does it?) levels of pay of upper management impact the rest of us commoners?arrow_forward
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