Study Guide for Final Exam   Economics 325   Labor Economics Chs. 8 & 14   Spring 2005

 

Define, Identify or Explain:

 

  1. Equilibrium wage differentials
  2. Transitional wage differentials
  3. Homogeneous workers, jobs
  4. Heterogeneous workers, jobs
  5. Compensating wage differentials
  6. Skill differential
  7. Shirking and efficiency wage differentials
  8. Turnover and efficiency wage differentials
  9. Skill-biased technological change and wage differentials
  10. Hedonic theory of wages
  11. Labor immobilities
  12. Wage discrimination
  13. Employment discrimination
  14. Occupational discrimination
  15. Human capital discrimination
  16. Postmarket vs. premakret discrimination
  17. Taste-for-discrimination model  of discrimination
  18. Discrimination coefficient
  19. Statistical discrimination theory
  20. Crowding model of discrimination
  21. Comparable worth (look this up on google)
  22. Index of segregation
  23. Equal Pay Act of 1963
  24. Civil Rights Act of 1964
  25. Affirmative Action

 

Chapter 8 end-of-chapter discussion questions: 1, 2, 3,  4, 7,  8 & 10

Chapter 14 end-of-chapter discussion questions: 2, 3, 4, 5, 7, 9, 10, 12, 14

 

Other discussion questions:

 

  1. Explain each of the seven sources of compensating wage differentials.

 

  1. How do union status, firm size and discrimination each lead to wage differentials?

 

  1. How do differing human capital investments lead to noncompeting groups of workers and wage differences?  What are the sources of these differences in human capital investment? How does the expectation of discrimination lead to lower wages?

 

  1. What are the implications of the hedonic theory of wages?
  2. How does imperfect information about labor markets lead to wage differentials? How can imperfect and costly information lead wage differences within occupations that are equilibrium wage differences?

 

  1. How do labor immobilities lead to persistent wage differentials?

 

  1. What are some reasons for Black-White wage differences besides discrimination? What are some reasons for Male-Female wage differences other than discrimination? Why look for these other sources of wage differences? If nondiscriminatory factors for wage differences are not taken into account, how might wage parity disguise discrimination in hiring practices?

 

  1. Why might women and minorities invest in human capital at lower rates than white males?

 

  1. What are the conclusions or generalizations from the taste-for-discrimination model?

 

  1. Who gains and who is hurt by discrimination according to the taste-for-discrimination model?  Why?

 

  1. Why might comparable worth legislation lead to the continuation of occupational segregation?  How can occupational segregation be the result, at least partially, of choices made by the workers who are discriminated against?

 

  1. According to the index of segregation, who faces greater occupational discrimination, women or minorities? Why do you think that this is? Check out Internet Exercises at the end of Ch. 14.

 

  1. What factors besides antidiscrimination legislation might have led to the lowering of the Black-White wage gap?