ECON 211, Week 9 Notes
ECON 211, Week 9 Notes Econ 211-001
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This 2 page Class Notes was uploaded by Alejandra Cortez on Thursday April 7, 2016. The Class Notes belongs to Econ 211-001 at Colorado State University taught by Christina Curley in Winter 2016. Since its upload, it has received 14 views. For similar materials see Gender in the Economy in Economcs at Colorado State University.
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The content was detailed, clear, and very well organized. Will definitely be coming back to Alejandra for help in class!
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Date Created: 04/07/16
Gender in the Economy Week 9 Labor Market Discrimination Labor Market Discrimination Labor market discrimination: when employers treat certain groups different even if they have the same productivity level There is evidence that labor market discrimination still happens to women, possibilities that it also happens to men Models of the Labor Market Explanations for discrimination o Taste for discrimination: disliking a particular group doing a particular activity; thinking it’s weird, bigotry, they know there’s no difference in productivity Ex. Thinking it’s weird for men being nannies, even if they’re qualified o Statistical discrimination: thinking there’s a difference in productivity Ex. Not hiring a male nanny because it’s perceived that women are better are childcare Tastes for Discrimination Theory by Gary Becker – Nobel Laureate Conceptualized discrimination as a personal prejudice o Ex. Men not liking having female superiors Not hiring women as plumber because it’s weird Customers not feeling comfortable buying lingerie from male clerks o Sometimes the discrimination isn’t even conscious Discriminatory taste reflects a dislike for interacting with certain people in certain positions, rather than beliefs about qualifications Employer discrimination: occurs when an employer will act like there is some nonpecuniary cost of employing a certain group o Ex. The employer will only hire a women if the wage he pays her plus his discrimination cost is less than or equal to the cost of hiring a man Employee discrimination: occurs when an employee will act as if there is a cost of working with a particular group, therefore demand a higher wage o Empirically, this theory doesn’t hold very well Men earn more in sex segregated firms, women earn more in sex integrated firms o Sex integrated firms have more equal wages In reality, employers might not hire women into a mostly male firm because they think that it will lower the male workers’ morale or productivity Customer discrimination: occurs when customers act as if there is an extra cost associated with purchasing a good from a particular group Subtle Barriers Some barriers to employment/promotion might be social Women might have problems finding a mentor if most of the senior employees are male o One or both parties might think there will be assumptions (ex. sex scandal) Subtle discrimination might bar women from fitting in with the group if the group is all male Getting a job/promotion is easier with connections Statistical Discrimination Possibly more consistent with profit maximization Employers are faced with incomplete info about applicants and the info might be correlated with productivity when making employment decisions If employers believe that on average, a group has certain attributes, statistical discrimination against that group might occur o Ex. thinking that women will leave work to have children so they hire them at a lower wage or not at all *Employers are not allowed to ask marital status or intent to have children Employers might give women a less serious position, giving women less incentive to stay, leaving, and making employer think that they were right Studies show that women are more likely to quit their job
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