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Environmental Econ > Econ. of Discrimination > Flashcards

Econ. of Discrimination Flashcards

1
Q

What is the primary purpose of measuring discrimination in the labor market?

A

To analyze the extent and persistence of racial and gender wage differentials.

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2
Q

Why is comparing the average male wage to the average female wage directly not ideal for measuring discrimination?

A

Because it involves factors other than discrimination that generate wage differentials.

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3
Q

In the Oaxaca Decomposition, what does the term ’Differential Due to Discrimination’ imply?

A

The wage gap arising from differential treatment of groups

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4
Q

What is a key assumption of the Oaxaca Decomposition method?

A

‘Selection based on observables’ allowing for selection biases as long as they are the same for both groups

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5
Q

What impact did the 1964 Civil Rights Act have on employment discrimination based on race and gender?

A

It prohibited employment discrimination based on race and gender

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6
Q

Q6. In Becker’s theory, what does the discrimination coefficient represent?

A

The additional cost attributed to prejudice.

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7
Q

What factor is a significant contributor to the lower employment-to-population ratios among Black individuals compared to their white counterparts?

A

Lower average levels of education.

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8
Q

How is statistical discrimination typically illustrated in the labor market?

A

By wage differences among equally skilled workers

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9
Q

What is the primary challenge in measuring wage discrimination?

A

Distinguishing between pre-market and labor market factors

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10
Q

How does employee discrimination affect the workforce?

A

It leads to a completely segregated workforce.

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11
Q

What has been a major factor in the demographic transformation of the U.S. labor force in recent decades?

A

Shifting societal expectations regarding work-life balance, particularly among women

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12
Q

What trend was observed in the gender pay gap between 1970 and 2008?

A

It significantly decreased

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13
Q

Which factor is a significant contributor to the gender pay gap?

A

Occupational choice

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14
Q

As of 2008, which group had full-time earnings that nearly equaled those of white men?

A

Asian-American men

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15
Q

What is a significant factor contributing to the wage gap between women and men?

A

Variations in labor market experience.

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16
Q

What factor is a significant contributor to the lower employment-to-population ratios among Black individuals compared to their white counterparts?

A

Lower average levels of education

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17
Q

In the US labor market, what type of segregation appears less prevalent along racial lines than gender lines?

A

Occupational segregation

18
Q

What does the existence of unexplained differences in earnings between genders suggest?

A

Possible discrimination in the labor market

19
Q

In Becker’s theory, what does the discrimination coefficient represent?

A

The additional cost attributed to prejudice.

20
Q

According to Becker, what happens when an employer is prejudiced against black workers?

A

The employer acts as if the cost of hiring black workers is higher than actual.

21
Q

Out of the following options, what is a key source of labor market discrimination?

A

Personal prejudice

22
Q

What impact does customer discrimination have on black workers when they cannot be easily hidden from public view?

A

Decreased wages

23
Q

How is statistical discrimination typically illustrated in the labor market?

A

By wage differences among equally skilled workers

24
Q

What kind of discrimination arises when employers use statistics about group performance in hiring decisions?

A

Statistical discrimination

25
Q

What is the primary challenge in measuring wage discrimination?

A

Distinguishing between pre-market and labor market factors

26
Q

What is the primary purpose of measuring discrimination in the labor market?

A

To analyze the extent and persistence of racial and gender wage differentials

27
Q

Why is comparing the average male wage to the average female wage directly not ideal for measuring discrimination?

A

Because it involves factors other than discrimination that generate wage differentials

28
Q

Why do we use Oaxaca Decomposition in the context of labor market discrimination?

A

To decompose the wage differential into parts due to skill differences and discrimination

29
Q

What is a limitation of the Oaxaca Decomposition?

A

It may not include all skill characteristics affecting earnings

29
Q

What would be the case if β_{M} = β_{F} in the context of wage determination?

A

Men and women’s education would be valued equally by employers

29
Q

In the Oaxaca Decomposition, what does the term ‘Differential Due to Discrimination’ imply?

A

The wage gap arising from differential treatment of groups

30
Q

In the Oaxaca Decomposition, what does the term ‘Differential Due to Skills’ imply?

A

Wage gap arising because of skill differences between groups

31
Q

What is the most important key assumption of the Oaxaca Decomposition method?

A

‘Selection based on observables’ allowing for selection biases as long as they are the same for both groups

32
Q

In the context of labor market discrimination, what issue is raised by differential selection into the labor market?

A

Different decisions by men and women to participate in the labor market

33
Q

What impact did the 1964 Civil Rights Act have on employment discrimination based on race and gender?

A

It prohibited employment discrimination based on race and gender

33
Q

What is a potential reason for the decline in black labor force participation?

A

The possibility that lower-skill black workers are dropping out of the labor market

34
Q

What does the wage gap between young black and white workers change when we controll for AFQT scores?

A

It decreases substantially, indicating the importance of test scores

35
Q

What factor, contributes to occupational segregation between men and women in the labor market?

A

Social influences and perceptions about gender-appropriate occupations

36
Q

How has the female-male wage ratio in the U.S. labor market changed from 1960 to 2012?

A

It increased significantly

37
Q

How does the affirmative action affect the employment and wages of black women?

A

Significant impact, especially in increasing their representation in federal contractors

Environmental Econ (3 decks)

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