Chapter 19 - Earnings and Discrimination Flashcards Preview

EC120 - MicroEcon > Chapter 19 - Earnings and Discrimination > Flashcards

Flashcards in Chapter 19 - Earnings and Discrimination Deck (8)
Loading flashcards...
1
Q

Compensating Differential

A
  • Factor effecting productivity and wages

- a difference in wages that arises to offset the non-monetary characteristics of different jobs

2
Q

Human Capital

A
  • Factor effecting productivity and wages

- the accumulation of investments in people, such as education and on-the-job training

3
Q

Union

A
  • a worker association that bargains with employers over wages and working conditions
4
Q

Strike

A
  • the organized withdrawal of labour from a firm by a union
5
Q

Efficiency Wages

A
  • above equilibrium wages paid by firms in order to increase worker productivity
6
Q

Ability, Effort, and Chance

A
  • Factor Effecting Productivity and Wages
  • Greater ability/effort commands higher wage
  • Wages effected by chance
7
Q

The Superstar Phenomenon

A
  • Factor Effecting Productivity and Wages
  • superstars earn more than average in their fields

Characteristics

  • every customer in the market wants to enjoy the good supplied by the best producer
  • the good is produced with a technology that allows the best producer to supply every customer at a low cost
8
Q

Where do Above-Equilibrium Wages Come From?

A
  • Minimum Wage Laws
  • Unions
  • Efficiency Wages