Class Notes (836,275)
Canada (509,725)
Economics (1,590)
ECO101H1 (575)
Lecture

Topic 13 - Earnings and Discriminations 1. The Impact of a Union; 2. Correlates of Marginal Revenue Product (MRP/VMP); 3. Male-Female Earning Gap: discrimination? 4. Pay Equity

3 Pages
110 Views
Unlock Document

Department
Economics
Course
ECO101H1
Professor
James Pesando
Semester
Winter

Description
Topic 13 – Earnings and Discriminations th (Jan 12 ) Outline: 1. The Impact of a Union; 2. Correlates of Marginal Revenue Product (MRP/VMP); 3. Male-Female Earning Gap: discrimination? 4. Pay Equity Observation: 1. Celine Dion: $30million/yr; Tiger Woods: $30million/yr; 2. Slightly less talented professionals: $50,000/yr; 3. Earning Differential has increased sharply over time; Can VMP (economics) explain? “Winner-Take-All” Markets Singers: Now – income derived from CDs; everyone can consume the “best” 19 Century – income derived from concerts; Golf: Now – income derived from TV (everyone can consume the “best”); 19 Century – income derived from ticket sales at tournaments; However, “Best” plumber earns (modestly) above average hourly wage; Reason: all customers cannot consumer the services of the “best” plumber  The Impact of a Union Wage SSL Union raises wage rate; W’ Union wage Union reduces employment in this industry; W C With the Union, workers are paid VMP; Higher wage = higher VMP = higher MP = less workers employed. DD L=VMP) N’ NC No. of Workers  Correlates of VMP 1. Education Male, 2001, Full-Time High School $41,218 College $49,224 University $71,352 2. Experience (Age) Males, 2001, Full-Time University Degree, Age 25-34; $52,944 University Degree, Age 35-44; $74,279 University Degree, Age 45-54 $79,496 3. Hour of Work Males, 2001 Full-Time $49,224 All (F/T, P/T, Seasonal) $38,347  Male – Female Earning GAP 1. “Raw Data” All employed males, 2001: $38,347 All employed females, 2001: $24,930 (65% of male earnings) 2. F/T, with university degree: Male: $71,352; Female: $48,158 (67.5% of male earning) 3. Age 25-34, F/T, with university degree: Male: $52,944; Female: $40, 616 (76.7% of female earning); DISCRIMINATI
More Less

Related notes for ECO101H1

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit