ECON 306 Lecture Notes - Lecture 13: Monopsony, Opportunity Cost, Competitive Equilibrium
24 May 2017
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Midterm: the grading was easy but for the final he expects the level of depth of the posted answers: statistical discrimination: Use group attributes (overall average productivity) to represent average productivity. Female on average have higher quit rates an employer might be less willing to higher you as an individual. Therefore, individual females with the same productivity of male get a lower wage. Important: this is not formal employer prejudice it"s lack of information. The employer uses any information that he has (screening): supply theories. Discrimination against female in one occupation/industry increases their supply of labour in others so it lowers the female wage rate. If demand is against me in industry a, i will move to industry b, thereby increasing supply of labour in b: crowding hypothesis: Pushing females into female-type jobs increased supply of labour on lower wage jobs. But if male and females are equally productive and females are paid less, in competitive markets we would expect:
