Earnings and Discrimination
50 questions available
Questions
What is a 'compensating differential' in the context of labor economics?
View answer and explanationAccording to the human-capital theory, why are workers with more education paid more?
View answer and explanationWhat are the two market characteristics necessary for the 'superstar phenomenon' to arise?
View answer and explanationAccording to the case study 'The Increasing Value of Skills' and Table 1, how did the earnings premium for female college graduates change from 1980 to 2008?
View answer and explanationThe case study 'The Benefits of Beauty' by Hamermesh and Biddle suggests that, on average, a person of average looks earns how much more than a person considered less attractive?
View answer and explanationWhich of the following is NOT listed as a reason for above-equilibrium wages?
View answer and explanationWhat is the primary difficulty in measuring the extent of labor-market discrimination by simply observing wage differences between groups?
View answer and explanationIn the study by Bertrand and Mullainathan on discrimination in hiring, what was the key finding regarding résumés with names like 'Lakisha Washington' versus names like 'Emily Walsh'?
View answer and explanationAccording to economic theory, how can a competitive market eventually reduce wage differentials that arise from employer discrimination?
View answer and explanationUnder what two conditions can discriminatory wage differentials persist in a competitive market?
View answer and explanationThe case study of segregated streetcars in the early 20th-century American South found that streetcar companies often:
View answer and explanationWhich of the following is an example of a compensating differential?
View answer and explanationWhat does the 'signaling' theory of education propose?
View answer and explanationAccording to Table 2 on page 405, what was the wage gap between the median white woman and the median white man in 2008?
View answer and explanationAccording to the textbook, which of the following professions is LEAST likely to have a 'superstar'?
View answer and explanationWhich of the following is NOT one of the three factors identified in Chapter 19 as important but difficult-to-measure determinants of wages?
View answer and explanationA labor union, by bargaining with employers, can raise the wage for its members. According to studies cited in Chapter 19, by approximately how much do union workers earn more than similar nonunion workers?
View answer and explanationWhat is a major consequence of wages being set above the equilibrium level due to minimum-wage laws, unions, or efficiency wages?
View answer and explanationTwo main hypotheses are proposed to explain the increasing earnings gap between skilled and unskilled workers. What do both hypotheses suggest has happened?
View answer and explanationAccording to the case study on discrimination in sports, why might a discriminatory wage gap have persisted in professional basketball?
View answer and explanationIn the research by Niederle and Vesterlund on gender differences in competition, what was the primary reason more men than women chose a tournament-style payment system?
View answer and explanationWhat is the economic argument for why a professor might earn less than a doctor, even with similar amounts of education?
View answer and explanationThe 'In the News' article 'The Human Capital of Terrorists' suggests that better-educated terrorists are more 'productive' because they:
View answer and explanationWhich of the following wage differences is LEAST likely to be the result of a compensating differential?
View answer and explanationIn the context of the theories of education and wages, what is a key difference in the policy implications of the human-capital theory versus the signaling theory?
View answer and explanationAccording to Table 1, in 1980, a male college graduate earned approximately how much more than a male high school graduate?
View answer and explanationThe study on the economics of beauty suggests that one interpretation of the 'beauty premium' is that good looks are a form of:
View answer and explanationOne of the two main hypotheses for the widening gap in earnings between skilled and unskilled workers involves international trade. This hypothesis suggests that the U.S.:
View answer and explanationA firm that pays an above-equilibrium wage to increase the productivity of its workers is said to be paying:
View answer and explanationAccording to the analysis in Chapter 19, if a large number of discriminating firms exist in a competitive market, what provides an incentive for a new firm to enter and not discriminate?
View answer and explanationThe median black woman in the U.S. in 2008 was paid 13 percent less than the median white woman. What does this statistic, by itself, tell us about discrimination?
View answer and explanationIn 2008, the earnings premium for a male college graduate was 88 percent. What does this mean?
View answer and explanationWhich factor is NOT a potential reason for the persistence of a discriminatory wage differential in a competitive market?
View answer and explanationThe theory of efficiency wages suggests that a firm might pay above-equilibrium wages to:
View answer and explanationWhen economists conclude that unexplained variation in wages is due to 'ability, effort, and chance,' what does this imply?
View answer and explanationIf a construction worker earns a higher wage than an office worker with the same level of education, this wage difference is most likely an example of:
View answer and explanationWhy might a study find a wage gap between two groups even after controlling for years of education?
View answer and explanationIf customer prejudice is the source of a discriminatory wage differential, what would be observed in the market?
View answer and explanationWhat is the primary difference between the human-capital and signaling views regarding a policy that increases everyone's level of education?
View answer and explanationIn 2008, the median black man was paid 21 percent less than the median white man. The chapter suggests a non-discriminatory reason for part of this gap is that:
View answer and explanationThe 'In the News' article about gender and competition found that while men and women performed equally on a task, men were twice as likely to choose a tournament pay scheme. What percentage of men chose the tournament?
View answer and explanationWhat does the existence of the superstar phenomenon imply about the distribution of income?
View answer and explanationIf a company offers higher pay for employees who work in a remote, undesirable location, this is an example of:
View answer and explanationWhich of the following would be an example of government-mandated discrimination?
View answer and explanationThe earnings gap between skilled and unskilled workers has widened. The technological change hypothesis suggests this is because technology like computers:
View answer and explanationWhy do economists believe that effort and chance play a large role in determining wages?
View answer and explanationIf a government requires all firms to provide a health insurance benefit to their workers, this policy will likely:
View answer and explanationIn the study of old baseball card prices, the finding that cards of black players sold for less than cards of comparable white players is evidence of:
View answer and explanationA key conclusion of Chapter 19 is that differences in earnings in our economy can be attributed to:
View answer and explanationAccording to the case study on men and women's choices in competitive environments, which group was more likely to be overconfident about their performance?
View answer and explanation