Flashcards on Labor Market Discrimination and Wage Differentials
Labor Market Discrimination and Wage Differentials Explained
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Labor market discrimination
36 cards
Card 1
Question: What type of discrimination is indicated when a restaurant hires only males as servers, only females as bartenders, and a mix for back-of-house roles
Answer: Employer discrimination.
Card 2
Question: What is customer discrimination and one workplace outcome it produces?
Answer: Customer discrimination occurs when customer preferences affect hiring or pay; it can lead to a segregated workforce and lower wages for the discrimin
Card 3
Question: List outcomes associated with customer discrimination.
Answer: Lower wages for the discriminated group, a segregated workforce, and reduced firm profits (and potentially lower output prices depending on context).
Card 4
Question: What is statistical discrimination in hiring decisions?
Answer: Using group averages or past group behavior (e.g., higher quit rates among women) to make hiring choices about an individual candidate rather than ind
Card 5
Question: If a firm hires a man over an equally qualified woman because historically women at the firm quit more often, what kind of discrimination is that?
Answer: Statistical discrimination.
Card 6
Question: How does an affirmative action quota affect a profit-maximizing, color-blind firm that already meets the quota?
Answer: If the firm already meets the required quota, it will make no changes in its hiring practices.
Card 7
Question: What must a profit-maximizing color-blind firm do if an industry-wide affirmative action quota requires more hires from a group the firm currently und
Answer: The firm will have to start hiring some workers it would prefer not to (to meet the quota).
Card 8
Question: In a discrimination model, what best describes nepotism?
Answer: A preference to hire a certain type of worker, for example, a worker of one's same race.
Card 9
Question: For an employer prejudiced against black workers, the perceived cost of hiring a black worker will exceed what?
Answer: The wage of blacks (the employer acts as if the black wage is higher by their discrimination coefficient).
Card 10
Question: What is a general consequence of discrimination in the workforce?
Answer: It leads to inefficiency.