chapter 30 gender. chapter objectives what is discrimination why women make less than men modeling...
TRANSCRIPT
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Chapter 30
Gender
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Chapter Objectives
• WHAT IS DISCRIMINATION
• WHY WOMEN MAKE LESS THAN MEN
• MODELING SEX DISCRIMINATION
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What is Discrimination
• Disparate Treatment Discrimination treating two otherwise equal people differently on the basis of gender
• Adverse Impact Discriminationdoing something that is not necessarily discriminatory on its face but that impacts some groups more negatively than others
• Rational or Statistical Discriminationdiscrimination that is based on sound statistical evidence and is consistent with profit maximization
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Measuring and Detecting Discrimination
• Regression techniques– Statistical methods which seek to determine if the
differences in treatment for men and women could have happened by random chance.
• Auditing techniques– Sending paid actors into a situation to determine if
people with identical economic characteristics are treated differently based on gender.
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Why Women Make Less than Men
• Pregnancy– Loss of time in the field and intermittent
absence can put women at a economic disadvantage. (Many times this difference in treatment is against the law.)
• Stay-at-home Moms– 98% of stay-at-home parents are women
leaving them out of the job market for extended periods of time.
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10000
20000
30000
40000
50000
60000
Earnin
gs
18-24 25-34 35-44 45-54 55-64Age
High SchoolBA MA
Age-Earnings Profile
Time out of the labor market causes women to lose the period of rapid economic advancement.
Age-Earnings Profile
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Why Women Make Less than Men (continued)
• Different Professions– Teachers (83%)– Nurses (93%)– Social Workers (69%)– Day Care workers (97%)– Secretaries (99%)– Vs– Mechanics(4%), Construction Workers (2%),
Truck Drivers(5%)
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• Flexible Employment– Women, more than men, tend to choose
jobs that allow them to deal with her children’s activities and illnesses.
Why Women Make Less than Men (continued)
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Sociology vs. Economics
• Economic Explanation for pay differences– People make choices and one of the
consequences of those choices is their earning capacity.
– If women choose • professions that do not pay well, • to have and stay home with children • jobs that allow them to deal with their children
they will make less money.
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Sociology vs. Economics(continued)
• Sociological Explanation for pay differences– Women are socialized
• to pick certain professions• into being the parent to stay home• into being the parent that sacrifices career for
family
which causes them to be paid less.
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Modeling Sex Discrimination
Labor market for jobsonly men are allowed do.
Wage SND
D
wND
Labor market for jobs that women who work must do.
Wage SND
D
SD
SD
wmen
wwomen
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Why Competition Would Eliminate Discriminatory Pay
• Businesses that hired only men at the higher wage would have higher costs than businesses that did not discriminate.
• Businesses that did not discriminate could lower their prices and take the market share of those firms that did discriminate.
• As this happened firms would see that discrimination was not consistent with maximizing profits and would stop discriminating.
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Why Competition Would Not Necessarily Eliminate
Discrimination• In industries where there is economic profit,
firm owners may continue to discriminate and consider it a price they are willing to pay so as to not employ women.
• In industries in which the customer chooses which business to patronize based on gender, firms may be willing to discriminate because their profit maximizing interest and discrimination are consistent.
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Consumption Market Discrimination
• Women pay more for automobiles.• Many women argue that they pay more
for dry cleaning (evidence is ambiguous.)
• Women pay less for automobile insurance and pay more for retirement annuities because they generally are safer drivers and live longer.