Discrimination in the Labour Market

Question 1

why shouldnt the government intervente discrimination

Answer 1

it can have positive impacts on firms
lower cost of production
increase profit
investment in research and development
dynamic efficiency
lower prices with an increase in consumer welfare
for example Apple R and D in custom silicop chips less reliance on external suppliers which means they are more energy efficient
Eval:can lead to a fall in profit for firms if caught wage discriminatiing–negative publicity-may shut down

Question 2

goverment should intervene discrimination through

Answer 2

disclosing data about ethnic pay gaps
consumers become more ethically conscious
which means a fall in demand for firms product
such as tommy hilfiger
This leads to a more incentive for firms to pay higher wages for ethnic gorups

Eval:Large pharmaceutical companies faced no backlash due to it being an essential product
depends on the industry

Question 3

Wage discrimination

Answer 3

when workers are paid different wages for equal work with no difference in skill sets or costs of employmeny

Question 4

condiitons for wage discrimination

Answer 4

must have a degree of monpsony power this is because in order to practice wage discrimination,firms ust be able to set wages depedning on the willingness of workers to supply labo

firms must be able to differntiate between groups of workers who can be wage discriminated.

Question 5

wage discrimination pros

Answer 5

reduce total cost for employers –increase in rd and Dynamic efficiency

reduce cost reduce prices increase in sales increase growth

incetives individuals to gain qualification by improivng level of education

create a trickle down effect

Question 6

wage discrimination cons

Answer 6

exploitation of workers. workers have lower income despite havingsame mrp

can increasse cost for busineesses as extra hr administration is eneded to organsie contracts with indivdualised pay and condiitons lengthening hr process

can lead tostrikes and dsiputes
if workers find out about wage differntials which means firms shut down

Question 7

labour discrimination

Answer 7

workers are discriminated due to differences ing ender ethnicity religon sexual preference

Question 8

reasons for labou r discrimination

Answer 8

reducedd cop more profitable allows firms to increase sales due to lower prices

employers may suffer from imperfect info beleiving there is a difference inqualifications and skills between two groups of worksers.

Question 9

impact of labour discrimination

Answer 9

those groups wage didcrimination will suffer short term from lower wages and underemployment.. Find it hard to get paid according to mrp in long term thre is a change form them to increase wages if they are more productive.

non discriminated gorups will benefit in the short run from higher wages as there i less competition for position. in the long run economy may experiency braind rain

Question 10

application of wage differential

Answer 10

notrthumberland teacher awarded £50k after unfairr dismmised case in 2021 due to discrimination