Econ. of Discrimination Flashcards
What is the primary purpose of measuring discrimination in the labor market?
To analyze the extent and persistence of racial and gender wage differentials.
Why is comparing the average male wage to the average female wage directly not ideal for measuring discrimination?
Because it involves factors other than discrimination that generate wage differentials.
In the Oaxaca Decomposition, what does the term ’Differential Due to Discrimination’ imply?
The wage gap arising from differential treatment of groups
What is a key assumption of the Oaxaca Decomposition method?
‘Selection based on observables’ allowing for selection biases as long as they are the same for both groups
What impact did the 1964 Civil Rights Act have on employment discrimination based on race and gender?
It prohibited employment discrimination based on race and gender
Q6. In Becker’s theory, what does the discrimination coefficient represent?
The additional cost attributed to prejudice.
What factor is a significant contributor to the lower employment-to-population ratios among Black individuals compared to their white counterparts?
Lower average levels of education.
How is statistical discrimination typically illustrated in the labor market?
By wage differences among equally skilled workers
What is the primary challenge in measuring wage discrimination?
Distinguishing between pre-market and labor market factors
How does employee discrimination affect the workforce?
It leads to a completely segregated workforce.
What has been a major factor in the demographic transformation of the U.S. labor force in recent decades?
Shifting societal expectations regarding work-life balance, particularly among women
What trend was observed in the gender pay gap between 1970 and 2008?
It significantly decreased
Which factor is a significant contributor to the gender pay gap?
Occupational choice
As of 2008, which group had full-time earnings that nearly equaled those of white men?
Asian-American men
What is a significant factor contributing to the wage gap between women and men?
Variations in labor market experience.
What factor is a significant contributor to the lower employment-to-population ratios among Black individuals compared to their white counterparts?
Lower average levels of education
In the US labor market, what type of segregation appears less prevalent along racial lines than gender lines?
Occupational segregation
What does the existence of unexplained differences in earnings between genders suggest?
Possible discrimination in the labor market
In Becker’s theory, what does the discrimination coefficient represent?
The additional cost attributed to prejudice.
According to Becker, what happens when an employer is prejudiced against black workers?
The employer acts as if the cost of hiring black workers is higher than actual.
Out of the following options, what is a key source of labor market discrimination?
Personal prejudice
What impact does customer discrimination have on black workers when they cannot be easily hidden from public view?
Decreased wages
How is statistical discrimination typically illustrated in the labor market?
By wage differences among equally skilled workers
What kind of discrimination arises when employers use statistics about group performance in hiring decisions?
Statistical discrimination
What is the primary challenge in measuring wage discrimination?
Distinguishing between pre-market and labor market factors
What is the primary purpose of measuring discrimination in the labor market?
To analyze the extent and persistence of racial and gender wage differentials
Why is comparing the average male wage to the average female wage directly not ideal for measuring discrimination?
Because it involves factors other than discrimination that generate wage differentials
Why do we use Oaxaca Decomposition in the context of labor market discrimination?
To decompose the wage differential into parts due to skill differences and discrimination
What is a limitation of the Oaxaca Decomposition?
It may not include all skill characteristics affecting earnings
What would be the case if β_{M} = β_{F} in the context of wage determination?
Men and women’s education would be valued equally by employers
In the Oaxaca Decomposition, what does the term ‘Differential Due to Discrimination’ imply?
The wage gap arising from differential treatment of groups
In the Oaxaca Decomposition, what does the term ‘Differential Due to Skills’ imply?
Wage gap arising because of skill differences between groups
What is the most important key assumption of the Oaxaca Decomposition method?
‘Selection based on observables’ allowing for selection biases as long as they are the same for both groups
In the context of labor market discrimination, what issue is raised by differential selection into the labor market?
Different decisions by men and women to participate in the labor market
What impact did the 1964 Civil Rights Act have on employment discrimination based on race and gender?
It prohibited employment discrimination based on race and gender
What is a potential reason for the decline in black labor force participation?
The possibility that lower-skill black workers are dropping out of the labor market
What does the wage gap between young black and white workers change when we controll for AFQT scores?
It decreases substantially, indicating the importance of test scores
What factor, contributes to occupational segregation between men and women in the labor market?
Social influences and perceptions about gender-appropriate occupations
How has the female-male wage ratio in the U.S. labor market changed from 1960 to 2012?
It increased significantly
How does the affirmative action affect the employment and wages of black women?
Significant impact, especially in increasing their representation in federal contractors
