Gender And Economics Chapter 7

Front 1

Study the answers to question 1 of the questions you answered from chapter 7. In particular, what percent of the pay gap between men and would is unexplained?

Back 1

o 41.1
o It remains unexplained because it is potentially due to discrimination.
o Workforce, motivation, interpersonal skills, child bearing, less likely to compete, the value you place on money

Front 2

In the gray box on sexual orientation and earnings, what was the basic finding on earnings of transgender people, before and after their sex change?

Back 2

• The study found that the average earrings of individuals who changed their gender from female to male increased slightly, while the average earnings of individuals who changed their gender from male to female fell by nearly one-third.

Front 3

The University of Michigan Law School study of the graduates was able to minimize gender differences in unmeasured characteristics and still showed a pay gap of how much (at start of career and 15 years later)?

Back 3

• The gap in pay between women and men was found to be relatively small at the outset of their careers, but 15 years later, women graduates earned only about 60 percent as much as men.
• Some of the difference reflected choices that worked themselves made, including the propensity of women lawyers to work shorter hours.
• Men still earned 11 percent more.

Front 4

The study that examined women's productivity (marginal product) against men's found what?

Back 4

• Women’s estimated marginal product was somewhat lower than men’s
• However, women’s wages fell short of men’s by considerably more than what could be explained by their lower marginal productivity.

Front 5

From a survey of top executives at 10 major US firms with global operations, what did they find in the differences in potential work-family conflict for the male versus female executives?

Back 5

• While 90 percent of male executives had children, only 65 percent of female executive did.
• Although the majority of both the male and the female executives were married or in a couple relationship, this was true of a considerably higher proportion of men than of women.
• Among those who were married o in a couple relationships, nearly 75 percent of the women had a spouse/partner who was employed full time; in contrast, 75 percent of the men had spouse/partner who was not employed outside of home.

Front 6

Explain the feedback effects about gender division in the family versus gender division in the labor market (question 11 in chapter 7 questions for you to answer).

Back 6

o Labor market discrimination or unequal treatment of women in the labor market may adversely affect women’s own decisions and behavior.

Front 7

Tastes for discrimination model

Back 7

 Discrimination is a personal prejudice against associating with a certain group.
 One needs to be “compensated” to associate with women; non-pecuniary cost of associating with women in “socially inappropriate” role

Front 8

The discrimination coefficient

Back 8

 (d) is the amount of the “compensation”
 The “full cost” of employing woman is her wage + discrimination coefficient
 If (wF + d) < = wM then hire female, otherwise not.
 Therefore, WF (female wage) has to be < (less than ) WM (male wage)

Front 9

What role do competitive markets play in eliminating discrimination?

Back 9

discriminating firms have higher cost of employing men where non-discriminating firms have a lower cost for employing women and in a competitive market, the firm will aim to maximize profits

Front 10

Be able to explain the statistical discrimination model. How does this model result in the gender pay gap?

Back 10

o Employers make decisions with incomplete information and uncertainty about a particular applicant
o Apply “average characteristics” believed about group to an individual
o Severe feedback effects with statistical discrimination

Front 11

Be able to explain the institutional discrimination model. Remember that this model has two types, as described on pages 223-224. How does this model result in the gender pay gap?

Back 11

o There are rigidities to pay an promotion at firms
o Two reasons for this rigidity:
 Internal labor market-when firm specific skills are specialized for a high-proportion of high internal jobs the firm has an internal labor market.
 Primary and secondary jobs (dual labor market)-primary jobs have better pay and more promotion opportunities due to firm-specific skills and secondary lower paying wth few promation opportunities and fairly high rates of labor turnover
o This discrimination that is not usually overt-creates subtle barriers

Front 12

Disparate treatment

Back 12

 Have intent to discriminate, to treat differently, is a clear violation of Title VII, claim that women/ men can’t do certain types of jobs; not backed up with a BFOQ

Front 13

Disparate impact

Back 13

 Unintentional discrimination by setting up employment standard/ practice that disproportionally harms a certain group; example able to lift a certain amount of pounds unless it is classified as a “business necessity.”

Front 14

Explain the two types of sexual harassment under Title VII and be able to give an example of each

Back 14

o Quid pro quo
 Illegal to make sexual demands where a refusal results in an adverse action for the employee
o Hostile work environment
 Sexual harassment is illegal if it is unwelcome, pervasive, and creates abusive work environment; what a “reasonable person” would perceive as hostile (includes same sex harassment)

Front 15

On page 231, read about the Ledbetter v. Goodyear Tire and Rubber Co case. What happened to Ms. Ledbetter throughout her many years of employment at Goodyear?

Back 15

In the beginning she was paid the same as her male co-workers but in 1998, when she brought suit, she was paid 40 percent less than her male counterparts.

Front 16

In her case, there was a 180 day time frame for her to file a claim of pay discrimination with the EEOC. The question at hand was when this 180 day time frame starts. From only the first time there is a pay difference in her paycheck or does the 180 days start over again every time she gets a paycheck that continues her lower pay?

Back 16

Within the 180 days after the discriminatory pay-setting decision.

Front 17

What did the Supreme Court decide on this issue?

Back 17

They would not know within the 180 day limit that she was under paid. If a woman was trying to work in a non traditional environment, and evidence is found it could accumulate to a large sum that she is owed

Front 18

What did Congress do in 2009?

Back 18

Legislation was passed by Congress that restored the EEOC interpretation, that is, it defined the 180 days as starting each time discriminatory compensation is received, rather than when the employer discriminates for the first time.

Front 19

Explain pay and occupational differences between men and women.

Back 19

not all markets are competitive so they can't afford to discrimination, for the sexual change men-female, they were paid less and female-male were paid more.