ECON 3240 Lecture Notes - Lecture 9: Design Of Experiments, Visible Minority, Kenneth Arrow
Document Summary
E(cid:272)o(cid:374)o(cid:373)i(cid:272) theo(cid:396)(cid:455) p(cid:396)edi(cid:272)ts that the (cid:449)age a fi(cid:396)(cid:373) is (cid:449)illi(cid:374)g to pa(cid:455) a (cid:449)o(cid:396)ke(cid:396) is (cid:271)ased o(cid:374) the (cid:449)o(cid:396)ke(cid:396)(cid:859)s p(cid:396)odu(cid:272)ti(cid:448)it(cid:455) If t(cid:449)o (cid:449)o(cid:396)ke(cid:396)s ha(cid:448)e the sa(cid:373)e p(cid:396)odu(cid:272)ti(cid:448)it(cid:455) (cid:271)ut the(cid:455)(cid:859)(cid:396)e paid diff = dis(cid:272)(cid:396)i(cid:373)i(cid:374)atio(cid:374) Explanations for wage differences we have looked @ so far: diffe(cid:396)e(cid:374)(cid:272)es i(cid:374) (cid:449)o(cid:396)ke(cid:396)s(cid:859) (cid:272)ha(cid:396)a(cid:272)te(cid:396)isti(cid:272)s, age, edu(cid:272)atio(cid:374), t(cid:396)ai(cid:374)i(cid:374)g, (cid:862)a(cid:271)ilit(cid:455)(cid:863) Look @ if they have same observable characteristics & they earn diff wage = may be discrimination. But sometimes workers who are equally productive earn diff wages. May be due to discrimination in the labour market. Discrimination - diff wages to equally productive or qualified workers bc of gender, race, ethnicity, etc. Illustration: a man w/ a ba earns more than a woman w/ a high school diploma = not discrimination, a man w/ a ba earns more than a woman w/ a ba = may be discrimination. Areas of focus: why does labour market discrimination happen? (theoretical, how much labour market discrimination is there? (empirical)
