Chapter 8 Flashcards
Viruses don’t discriminate
and neither should we
World Health Organization
Labor issues include
labor trafficking,
child labor, unemployment, and labor
discrimination
occurs when the
marketplace takes into account such
factors as race and sex when making
economic exchanges
Discrimination
is a microeconomic concern. It
comes down to a mismatch between demand and supply.
Labor market discrimination
represents job seekers with their unique set of skills
and experiences, while the demand side comprises employers
looking for specific skill sets.
The
supply side
In neoclassical economics, ____________ is
defined as the differential treatment of two similarly qualified
persons based on their gender, color, handicap, religion, etc.
labor market discrimination
According to _______, the traditional
method for identifying job discrimination, (1998) is to isolate
group productivity disparities (education, work experience).
Darity and Mason (1998)
is ascribed to differences in results
(such as earnings and job placement) that cannot be linked
to worker qualities.
Discriminatory treatment
MOTIVES FOR DISCRIMINATION
Prejudice
❑ Stereotyping
❑Statistical discrimination
occurs
when an employer or other agent has a
dislike for a specific group, such as women
or ethnic minorities
Prejudice or taste discrimination
is usually irrational
Such prejudice
occurs when an
employer views some groups as less suitable employees
than other groups are, even though there are few solid
grounds for holding such a view
Stereotyping or error discrimination
This is different from acting with prejudice, in that
_____________ is not based on dislike, but rather on
erroneous information or an incorrect assessment of the
situation
stereotyping
arises when groups differ
statistically in their distributions on characteristics
relevant in a given situation.
Statistical discrimination
Such discrimination may be rational. It is not based on
prejudice, but on a correct assessment of average or
other statistical characteristics of groups.
Statistical discrimination
THEORIES OF LABOR MARKET
DISCRIMINATION
▪ Neoclassical
▪ Institutional
▪ Radical economic theories of discrimination
This theory focuses on individual choices made by
employers based on information (or lack thereof). It
argues discrimination can arise in two ways –
Statistical discrimination or taste-based discrimination.
NEOCLASSICAL
This theory emphasizes the role of social institutions
and practices in perpetuating discrimination. It
highlights factors like social networks and signaling
theory.
INSTITUTIONAL THEORY
This theory views discrimination as a structural
feature of the labor market that benefits dominant
groups. It argues power dynamics and divided labor
markets.
RADICAL ECONOMIC THEORY
in the labor market refers to the unequal
treatment of workers based on certain characteristics, such as
race, gender, age, religion, or national origin.
DISCRIMINATION
This can occur at various stages of the employment process, such
as during the hiring process, in the allocation of job tasks and
responsibilities, and in the determination of pay and benefits
Discrimination
Labor discrimination can have significant
negative impacts on the affected workers,
including
Reduced opportunities for employment
▪ Lower pay
▪ Fewer opportunities for advancement
▪ Income inequality
TYPES OF DISCRIMINATION
Wage Discrimination
▪ Employment Discrimination
▪ Employee Discrimination
▪ Customer Discrimination
A practice of paying one worker or group of workers less
than others for performing the same job.
WAGE DISCRIMINATION
a woman may be paid less than a man for
doing the same job, or an individual with a disability may be
paid less than someone without a disability for performing
the same task.
WAGE DISCRIMINATION
This pertains to the unfair treatment of an individual or group
of individuals in the workplace based on certain
characteristics.
EMPLOYMENT DISCRIMINATION
This type of discrimination can take many forms and can
occur at any stage of the employment process, including
hiring, promotions, wages, and other terms and conditions of
employment.
EMPLOYMENT DISCRIMINATION
Similar to job discrimination, this type of discrimination
happens between employees.
EMPLOYEE DISCRIMINATION
This is when one or more employees are treated unfairly
due to disparities in their gender, religion, color, age,
aptitude, or other characteristics.
EMPLOYEE DISCRIMINATION
For instance, a worker is bullied by his co-workers
because he is considered a treat to them. In this case,
the workplace has a hostile atmosphere.
EMPLOYEE DISCRIMINATION
A type of discrimination that involves a third-party
discrimination in the workplace.
CUSTOMER DISCRIMINATION
This happens when a customer, client, or a non-employee
makes a disparaging remark or refuses to work with the
employee based on protected class status
CUSTOMER DISCRIMINATION
For example, a customer complains that he wants to speak
to a man because women know nothing about the product
or a client refuses to work with a employee because he is a
high school graduate.
CUSTOMER DISCRIMINATION
is a complex, multi-factor
phenomenon.
Discrimination
in the labor market refers to the
unequal treatment of workers on the basis of their
gender or sex.
Gender discrimination
In the Philippines, the pay gap against women is at_______
with the geometric means of pay for men and
women at ₱361.60 and ₱344.91, respectively,
4.84%,
STYLIZED FACTS ABOUT Gender
AND Discrimination the Labor Market
- Women often earn less than men.
- Women are underrepresented in certain
industries. - Women are often paid less for the same work.
- Women are underrepresented in leadership
positions
Measures to Address Discrimination
in the Labor Market
- Implement anti-discrimination laws and policies.
- Provide training and education.
- Encourage reporting and address complaints.
- Monitor and track diversity and inclusion data.
5.Work with external organizations and experts. - Enforce laws and regulations.
One possible measure of discrimination is the
difference in mean
wages.
A better measure would compare the wages of equally _____
skilled
workers.
is a technique that decomposes the raw
wage differential into a portion related to a difference in skills and a
portion attributable to labor market discrimination.
Oaxaca decomposition
It’s a statistical technique used to analyze and understand the
difference in average outcomes (like wages or earnings) between two
groups.
Oaxaca decomposition
causes employers to blindly perceive the costs
of hiring blacks as being higher than the true cost.
Racial prejudice
Discrimination reduces profits in
potentially two ways.
A
discriminatory firm that hires only
white workers will hire too few
workers at a very high wage. Even a
discriminatory firm that only hires
black workers is harmed by its
actions as it hires too few workers.
generates a wage gap
between equally skilled black and white workers.
Employer discrimination
The quantity demanded for black labor increases
as the _______ wage ratio falls.
black-while
does not generate a
wage differential between equally skilled black and
white workers.
Employee discrimination
does not affect the
profitability of firms.
Employee discrimination
Work places will be segregated
Employee discrimination
If customers discriminate, their perceived price of
a good is utility-adjusted with a _________
discrimination
coefficient.
When a firm cannot hide black workers,
customer discrimination can have an adverse
effect on _____________
black wages.
is based on treating
an individual on the basis of membership in a
group and knowledge of that group’s history.
Statistical discrimination
a technique that decomposes
the raw wage differential into a portion related to a
difference in skills and a portion attributable to labor
market discrimination.
Oaxaca decomposition:
Determinants of the White-Black
Wage Ratio and Discrimination Discrimination
There has been an upward trend in the wages of blacks
in recent years.
▪ This has been attributed to increases in the quality
and quantity of black schooling.
▪ Government programs have positively affected black
wages.
Differences in wages can be linked to varying
educational attainment.
_________workers earn less, just as human capital
theory proposes.
Less skilled
tend to earn more than white, mainly due to
schooling.
Asians
has segregated women into
particular occupations where the return to education is
lower.
Occupational crowding
is more profitable the longer the payoff
period.
Human capital
