Chapter 2 L Flashcards
equal pay for equal work? means what
The same pay for women that men get for the same job
Women make what fraction of men’s pay on average
2/3
equal pay for work of equal value means what?
Work with the same value should be paid the same (for men and women)
two wage rate views are?
- wages in a free market are set by: marginal revenue product (MRP) of labour.
- means wages are set according to productivity and direct value of labour. - women’s choices are not free and wage difference cannot be explained by productivity differences alone.
- bc of social discrimination, women are pulled into less productive, therefore lower paying jobs.
How does pay equity legislation compare the values of two unrelated jobs?
through a point system that relies on criteria’s like skill, effort, experience, responsibility, and working conditions. these points are added up to see which jobs are comparable.
Who are the winners of pay equity legislation?
Women that will err dive
higher pay, society may from increased job satisfaction/productivity.
What are the allocative inefficiencies problems in relation to pay equity legislation?
even if two jobs require the same skill, education, and experience, the market may still value one over another due to other variables (like risk)
Who loses due to pay equity legislation?
Employers who have to pay more money.
Men who may have been overpaid will now get reduced wages.
Women- because now that they have to pay them more, employers just won’t hire them over a male.
What are the two main problems with pay equity?
less efficient use of resources and higher unemployment for women
How might the government close the gap between men and women pay?
encourage women into going into jobs that pay higher wages. support this with education and training.
