Bài giảng Labour Market Economics - Chapter 12 Discrimination and Male-Female Earning Differentials

Chapter TwelveDiscrimination and Male-FemaleEarning Differentials Created by: Erica Morrill, M.Ed Fanshawe CollegeChapter 12-1© 2002 McGraw-Hill Ryerson Ltd.Chapter FocusWages differences between men and womenMethods of measuring discriminationDiscrimination against womenEffective policies2© 2002 McGraw-Hill Ryerson Ltd.Reasons and Sources of DiscriminationPreferenceErroneous informationStatistical judgementThe effectiveness of policies depends on the reasons for the discriminationEmployersCo-workersUnions with male majorityCustomers3© 2002 McGraw-Hill Ryerson Ltd.Demand Theories of DiscriminationDemand for female labour is lowerReducing the employment of femalesDemand depends on the information concerning productivity4© 2002 McGraw-Hill Ryerson Ltd.Supply Theories of DiscriminationSupply is increased Asking wage of females is reducedCrowding Hypothesis females are segregated into female type jobsAbundance of supply lowers their marginal productivity and hence the wage5© 2002 McGraw-Hill Ryerson Ltd.Supply Theories of DiscriminationDual labour market theoryPrimary labour market-(unionized, monopolistic, expanding)Secondary labour market (nonunionized, highly competitive, declining)Men tend to be employed in primaryWomen in the secondary6© 2002 McGraw-Hill Ryerson Ltd.Reasons Females are Crowded into the Secondary MarketPrejudice and exclusion ImmobilityPoor working conditions  absenteeism and  wagesFemale attitudes on labour market worthFemale preferences - willing or imposed7© 2002 McGraw-Hill Ryerson Ltd.Noncompetitive Theories of DiscriminationWage differentials are inconsistent with market theoryPersistence due tocosts of adjustmentimperfect informationqueuing theories8© 2002 McGraw-Hill Ryerson Ltd.Noncompetitive TheoriesGovernmentTrade unionsEmployersMonopsonySystemic Discrimination9© 2002 McGraw-Hill Ryerson Ltd.Productivity Differences: Choice or DiscriminationDual role unable to recoup costs of human capital formationIntermittent labour market timeprevents them from acquiring continuous labour market experienceDiscrimination in the borrowing to finance human capital External pressures close off avenues of capital formation10© 2002 McGraw-Hill Ryerson Ltd.Evidence on Male-Female Earning DifferentialsPure wage gap exists due to discriminationFactors outside the labour market impact inequityOccupational distributionIndustry distribution11© 2002 McGraw-Hill Ryerson Ltd.Policies to Combat Sex DiscriminationConventional Equal Paydeals only with wage discrimination within the same job within the same establishmentEqual Value, Pay Equity or Comparable Worthvalue procedures an important componentEqual Employment Opportunity-may benefit new recruitsAffirmative Action/Employment EquityFacilitating Policies12© 2002 McGraw-Hill Ryerson Ltd.Equal Value ProceduresEquality of pay between jobs of equal valueValue determined by job evaluation scheme free of gender biasComparisons between jobs that are predominantly male and predominantly femaleRationale-deals with both wage discrimination and occupational segregation13© 2002 McGraw-Hill Ryerson Ltd.Rationale and ScopeDeals with both wage discrimination and occupational segregationScope Complaint based system Comparisons can only be made within the same establishment 14© 2002 McGraw-Hill Ryerson Ltd.Impact of Policy InitiativesCanada policies of “equal pay for equal work” have not had any impact Britain has been more successful When it is incorporated into collective bargainingEqual pay and equal employment studies are inconclusive15© 2002 McGraw-Hill Ryerson Ltd.Impact of PoliciesAffirmative ActionU.S. shows benefits to minority groups targeted at the expense of other minority groupsComparable Worth/Pay Equity Can close a portion of the overall gap within particular elements of the public sector16© 2002 McGraw-Hill Ryerson Ltd.End of Chapter Twelve17© 2002 McGraw-Hill Ryerson Ltd.