Chapter 8

Question 1

Viruses don’t discriminate
and neither should we

Answer 1

World Health Organization

Question 2

Labor issues include

Answer 2

labor trafficking,
child labor, unemployment, and labor
discrimination

Question 3

occurs when the
marketplace takes into account such
factors as race and sex when making
economic exchanges

Answer 3

Discrimination

Question 4

is a microeconomic concern. It
comes down to a mismatch between demand and supply.

Answer 4

Labor market discrimination

Question 5

represents job seekers with their unique set of skills
and experiences, while the demand side comprises employers
looking for specific skill sets.

Answer 5

The
supply side

Question 5

In neoclassical economics, ____________ is
defined as the differential treatment of two similarly qualified
persons based on their gender, color, handicap, religion, etc.

Answer 5

labor market discrimination

Question 6

According to _______, the traditional
method for identifying job discrimination, (1998) is to isolate
group productivity disparities (education, work experience).

Answer 6

Darity and Mason (1998)

Question 7

is ascribed to differences in results
(such as earnings and job placement) that cannot be linked
to worker qualities.

Answer 7

Discriminatory treatment

Question 8

MOTIVES FOR DISCRIMINATION

Answer 8

Prejudice
❑ Stereotyping
❑Statistical discrimination

Question 9

occurs
when an employer or other agent has a
dislike for a specific group, such as women
or ethnic minorities

Answer 9

Prejudice or taste discrimination

Question 10

is usually irrational

Answer 10

Such prejudice

Question 11

occurs when an
employer views some groups as less suitable employees
than other groups are, even though there are few solid
grounds for holding such a view

Answer 11

Stereotyping or error discrimination

Question 12

This is different from acting with prejudice, in that
_____________ is not based on dislike, but rather on
erroneous information or an incorrect assessment of the
situation

Answer 12

stereotyping

Question 13

arises when groups differ
statistically in their distributions on characteristics
relevant in a given situation.

Answer 13

Statistical discrimination

Question 14

Such discrimination may be rational. It is not based on
prejudice, but on a correct assessment of average or
other statistical characteristics of groups.

Answer 14

Statistical discrimination

Question 15

THEORIES OF LABOR MARKET
DISCRIMINATION

Answer 15

▪ Neoclassical
▪ Institutional
▪ Radical economic theories of discrimination

Question 16

This theory focuses on individual choices made by
employers based on information (or lack thereof). It
argues discrimination can arise in two ways –
Statistical discrimination or taste-based discrimination.

Answer 16

NEOCLASSICAL

Question 17

This theory emphasizes the role of social institutions
and practices in perpetuating discrimination. It
highlights factors like social networks and signaling
theory.

Answer 17

INSTITUTIONAL THEORY

Question 18

This theory views discrimination as a structural
feature of the labor market that benefits dominant
groups. It argues power dynamics and divided labor
markets.

Answer 18

RADICAL ECONOMIC THEORY

Question 19

in the labor market refers to the unequal
treatment of workers based on certain characteristics, such as
race, gender, age, religion, or national origin.

Answer 19

DISCRIMINATION

Question 20

This can occur at various stages of the employment process, such
as during the hiring process, in the allocation of job tasks and
responsibilities, and in the determination of pay and benefits

Answer 20

Discrimination

Question 21

Labor discrimination can have significant
negative impacts on the affected workers,
including

Answer 21

Reduced opportunities for employment
▪ Lower pay
▪ Fewer opportunities for advancement
▪ Income inequality

Question 22

TYPES OF DISCRIMINATION

Answer 22

Wage Discrimination
▪ Employment Discrimination
▪ Employee Discrimination
▪ Customer Discrimination

Question 23

A practice of paying one worker or group of workers less
than others for performing the same job.

Answer 23

WAGE DISCRIMINATION

Question 24

a woman may be paid less than a man for doing the same job, or an individual with a disability may be paid less than someone without a disability for performing the same task.

Answer 24

WAGE DISCRIMINATION

Question 25

This pertains to the unfair treatment of an individual or group of individuals in the workplace based on certain characteristics.

Answer 25

EMPLOYMENT DISCRIMINATION

Question 26

This type of discrimination can take many forms and can occur at any stage of the employment process, including hiring, promotions, wages, and other terms and conditions of employment.

Answer 26

EMPLOYMENT DISCRIMINATION

Question 27

Similar to job discrimination, this type of discrimination happens between employees.

Answer 27

EMPLOYEE DISCRIMINATION

Question 28

This is when one or more employees are treated unfairly due to disparities in their gender, religion, color, age, aptitude, or other characteristics.

Answer 28

EMPLOYEE DISCRIMINATION

Question 29

For instance, a worker is bullied by his co-workers because he is considered a treat to them. In this case, the workplace has a hostile atmosphere.

Answer 29

EMPLOYEE DISCRIMINATION

Question 30

A type of discrimination that involves a third-party discrimination in the workplace.

Answer 30

CUSTOMER DISCRIMINATION

Question 31

This happens when a customer, client, or a non-employee makes a disparaging remark or refuses to work with the employee based on protected class status

Answer 31

CUSTOMER DISCRIMINATION

Question 32

For example, a customer complains that he wants to speak to a man because women know nothing about the product or a client refuses to work with a employee because he is a high school graduate.

Answer 32

CUSTOMER DISCRIMINATION

Question 33

is a complex, multi-factor phenomenon.

Answer 33

Discrimination

Question 34

in the labor market refers to the unequal treatment of workers on the basis of their gender or sex.

Answer 34

Gender discrimination

Question 35

In the Philippines, the pay gap against women is at_______ with the geometric means of pay for men and women at ₱361.60 and ₱344.91, respectively,

Answer 35

4.84%,

Question 36

STYLIZED FACTS ABOUT Gender AND Discrimination the Labor Market

Answer 36

1. Women often earn less than men. 2. Women are underrepresented in certain industries. 3. Women are often paid less for the same work. 4. Women are underrepresented in leadership positions

Question 37

Measures to Address Discrimination in the Labor Market

Answer 37

1. Implement anti-discrimination laws and policies. 2. Provide training and education. 3. Encourage reporting and address complaints. 4. Monitor and track diversity and inclusion data. 5.Work with external organizations and experts. 6. Enforce laws and regulations.

Question 38

One possible measure of discrimination is the

Answer 38

difference in mean wages.

Question 39

A better measure would compare the wages of equally _____

Answer 39

skilled workers.

Question 40

is a technique that decomposes the raw wage differential into a portion related to a difference in skills and a portion attributable to labor market discrimination.

Answer 40

Oaxaca decomposition

Question 41

It's a statistical technique used to analyze and understand the difference in average outcomes (like wages or earnings) between two groups.

Answer 41

Oaxaca decomposition

Question 42

causes employers to blindly perceive the costs of hiring blacks as being higher than the true cost.

Answer 42

Racial prejudice

Question 43

Discrimination reduces profits in potentially two ways.

Answer 43

A discriminatory firm that hires only white workers will hire too few workers at a very high wage. Even a discriminatory firm that only hires black workers is harmed by its actions as it hires too few workers.

Question 44

generates a wage gap between equally skilled black and white workers.

Answer 44

Employer discrimination

Question 45

The quantity demanded for black labor increases as the _______ wage ratio falls.

Answer 45

black-while

Question 46

does not generate a wage differential between equally skilled black and white workers.

Answer 46

Employee discrimination

Question 47

does not affect the profitability of firms.

Answer 47

Employee discrimination

Question 48

Work places will be segregated

Answer 48

Employee discrimination

Question 49

If customers discriminate, their perceived price of a good is utility-adjusted with a _________

Answer 49

discrimination coefficient.

Question 50

When a firm cannot hide black workers, customer discrimination can have an adverse effect on _____________

Answer 50

black wages.

Question 51

is based on treating an individual on the basis of membership in a group and knowledge of that group’s history.

Answer 51

Statistical discrimination

Question 52

a technique that decomposes the raw wage differential into a portion related to a difference in skills and a portion attributable to labor market discrimination.

Answer 52

Oaxaca decomposition:

Question 53

Determinants of the White-Black Wage Ratio and Discrimination Discrimination

Answer 53

There has been an upward trend in the wages of blacks in recent years. ▪ This has been attributed to increases in the quality and quantity of black schooling. ▪ Government programs have positively affected black wages.

Question 54

Differences in wages can be linked to varying

Answer 54

educational attainment.

Question 55

_________workers earn less, just as human capital theory proposes.

Answer 55

Less skilled

Question 56

tend to earn more than white, mainly due to schooling.

Answer 56

Asians

Question 57

has segregated women into particular occupations where the return to education is lower.

Answer 57

Occupational crowding

Question 58

is more profitable the longer the payoff period.

Answer 58

Human capital