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Exploring Gender and Race Disparities in Workplace Earnings: Trends, Factors, and Government Initiatives

This analysis delves into the evolving dynamics of gender and race pay gaps, examining demographic shifts, discrepancies in earnings, discriminatory factors, and government interventions. The study explores measured and unmeasured sources affecting earnings differentials, discrimination theories, and strategies to combat biases in the workplace.

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Exploring Gender and Race Disparities in Workplace Earnings: Trends, Factors, and Government Initiatives

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  1. Topic 7 (Chapter 12) Gender and Race in Pay

  2. Table 12.1: Shares of the Civilian Labor Force for Major Demographic Groups: 1984, 1994, 2004, 2014

  3. Figure 12.1: Mean Earnings as a Percentage of White Male Earnings, Various Demographic Groups, Full-Time Workers over 24 Years Old, 2005

  4. Table 12.2: Female Earnings as a Percentage of Male Earnings, by Age and Education, Full-Time Workers, 2005

  5. Table 12.3: Female/Male Earnings Ratios and Percentages of Female Jobholders, Full-Time Wage and Salary Workers, by Selected High- and Low-Paying Occupations, 2005

  6. Table 12.4: Employment Ratios, Labor Force Participation Rates, and Unemployment Rates, by Race and Gender,* 1970-2005

  7. Table 12.5: Male Earnings Differences, by Ancestry, 1990

  8. Measured and unmeasured sources of earnings differences • Measured sources • Education • Experience • Working hours • Occupation • Unmeasured sources • Other characteristics (Quality, Language proficiency) • Social role (fat, ugly, bald, short) • Discrimination

  9. Theories of discrimination • Discrimination by employer, employees, and customer. • Employer discrimination: • MRP=Wm • Wf=Wm-d => MRP=Wf +d • Or d’=(Wm/Wf)-1 - Firm cannot maximize profits • Maximizing utility, U=U(taste, profit)? • Discrimination is greater if the minority group is a larger fraction of population

  10. Figure 12.2: Equilibrium Employment of Women or Minorities in Firms that Discriminate

  11. Figure 12.3: Market Demand for Women or Minorities as a Function of Relative Wages

  12. Figure 12.4: Effects on Relative Wages of an Increased Number of Nondiscriminatory Employers

  13. Figure 12.5: Effects on Relative Wages of a Decline in the Discriminatory Preferences of Employers

  14. Discrimination by employees and customers • Employees have discriminatory preferences  costly to employers, but so is getting rid of it. • Customer discrimination. cf) Statistical discrimination: part of screening problem. i) Employers use a group performance as a screening device. ii) Employers have more difficulty in finding the productivity of minority.

  15. Figure 12.6: The Screening Problem

  16. Figure 12.7: Labor Market Crowding

  17. Government programs to end discrimination • Equal Pay Act of 1963: outlaw separate pay scales for women and men (no mentioning equal opportunity) • Affirmative Action Plan of 1965: Equal employment opportunity plus required federal contractors to file action plans showing how they intended to increase employment of minorities.

  18. Table 12.6: Change in the Racial Composition of a 1,600-Person Job Group with Nondiscriminatory Hiring from a Pool That Is 12% Black (20% yearly turnover rate)

  19. Figure 12A.1: Estimated Male Comparable-Worth Salary Equation

  20. Figure 12A.2: Using the Estimated Male Comparable-Worth Salary Equation to Estimate the Extent of Underpayment in Female Jobs

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