wage differentials Flashcards
why do men earn more than women
-women move in and out of labour force (experience, skills, MRP): child bearing whereas men are more attached to work
-age of being economically inactive: really push on in late 20s
-differences in education/qualification: lower developed countries
-women work in low-paid occupations:
1)part time: children
2) service sector work: demand not so high
3) lack of trade union presence
-increase in supply of female workers:
-discrimination:
why do footballers earn more than teachers
graph:
normal supply and shift in demand
-MRP of footballers very high: better performance, television and shirt revenue
-low supply of footballers, inelastic supply and high demand
-monopsonist state employer of teachers: limited football clubs
-vocational element to teaching: compensating w.d. love doing what they do, holidays pensions
-reduced bargaining power of teacher trade unions due to reluctance to teach. impact on student performance
-lack of homogeneous footballers
why do Londoners get more than northerners
-restructuring of the uk economy and different demands for labour: financial services in London
-negative multiplier/accelarator effect: labour is a derived demand
-occupational and geographical immobility in the north
-migration of labour to more prosperous areas
why do certain ethnic groups earn more
-minority groups on average less qualified
-lack of language proficiency reduces productivity and employability, especially in high paid sectors
-concentration of such workers in low pay sectors
-living in poorer areas of country
-reluctance to migrate to earn more
-discrimination
advantages and disadvantages of wage differentials
-incentives: skills, training, qualifications
-trickle down effect: jobs, spending, tax
-encourage enterprise
-encourage work not welfare
-promote efficient resource allocation
-income inequality
-trickle down effect may not occur
-gov solutions limited if they are monopsonist employer
-how much inequality
-risks of gov failure
-sr vs lr
