welcome to econ 325 economics of gender week 9 beginning march 26

Welcome to Econ 325 Economics of Gender

Week 9Beginning March 26

Monday, March 26

• Your appointments with me• Part 3 of paper due on April 13

• 20 points• Theories regarding the similarities and

differences

• Study Chapters 6 & 7• ICA Wednesday• Exam 2: next Monday

Midterm grades were turned in yesterday

• Total possible points (excluding part 2 of paper) = 143• 90% =A• 80% = B• 70% = C• 60% = D• Below 60% = F

Don’t forget Bonus Opportunity Friedman Lecture

• Tonight• 7:30 PM, McDonough Auditorium• Speaker: Dr. Steven Landsburg,

professor of economics at the University of Rochester, will speak on More Sex is Safer Sex, and Other Surprises .

• 2 Bonus points for attendance• More bonus points for questions and or a

summary for MACRO & micro• You can’t summarize unless you attend

E-E profile for general/specific training

• Graph

All else being equal, it is harder for firms to attract employees to a job that offers specific training compared to a job that offers general training

• So firms offer a higher initial salaries to those who will receive specific training. • Employer’s share of cost

All else being equal, it is harder for workers who have received specific training to find other employments than those who have received general training

• So firms offer a lower raises to those who have received specific training. • Employer’s share of benefits

Who is more likely to quit in order to look for another job, a worker who has received specific training or one that has received general training?

• If a worker who has received specific training quits her job, she can find a job that pays less than her current job.

Why do firms prefer to hire men for jobs that offer significant specific on-job training?

• They anticipate that women are less likely to stay at the firm than men.• Same cost, but lower benefits to employers

• This behavior is called “Statistical Discrimination”

Wednesday, March 28

• Your appointments with me• Part 3 of paper due on April 13

• 20 points• Theories regarding the similarities and

differences

• Study Chapter 7• Exam 2: Monday

How was Friedman Lecture? Who asked questions? Summaries due Friday before 5 PM

via an attachment to an email

ICA

•No ICA today

Other reasons for gender wage gap• Women’s priority is family (home

production) • They don’t search for the best job and

take the first job (sometimes low paying job) available

• Go wherever their husband’s job takes them take a low paying job in the new location

• Their income is considered secondary anything is good low paying jobs

Gender Discrimination (Chapter 7)

• Exists when • two equally qualified individuals are

treated differently, or• a more qualified individual is treated

worse than a less qualified individual,

• solely based on their genders.

Types of Discrimination• 1) Same productivity – different

outcomes• Example

• Pat & Chris are of two different genders• Both equally productive in Job “A”• Either Pat does not get the job, or• Pat makes less than Chris• If Pat already knows this, he/she is less likely

to invest on her/his human capital Pat will not go to school to learn how to do Job “A” (feedback effect)

Types of Discrimination

• 2) Different productivity - different outcomes

• Example• Pat & Chris are of two different genders• Pat is more productive in job “A” than Chris• Either Pat does not get the job, or• Pat makes less than Chris• Results in misallocation of labor resources and

inefficiency in production• Feedback effect

Types of Discrimination

• 3) Same productivity different productivity

• Example• Pat & Chris are of two different genders• Initially Pat & Chris are equally productive

in Job “A” • Because of discrimination Pat’s

productivity declines and so does her /his real wage.

• Feedback effect

Empirical Studies on Discrimination

• Table 7.1, page 205• 1. Human Capital Differences

• Education• Experience

• 2. Other Differences• Occupations• Industries• Unionization


• Other study• About 32 % of wage differential is

explained by the difference in human capital (mostly experience)

• About 67% of wage differential is due to other factors (like what?)

Empirical Studies on Discrimination • Another study

• About 30 % of wage differential is due to people with similar human capital working in different industries or occupation


• Sample: University of Michigan Law School Grads 15 Years After Graduation

• Observation: Pay gap was small in the beginning of their career

• 15 years later, women graduates earned 60% of men’s salaries

• Reason?• Shorter hours• More interruptions

• Even after controlling for these factors, men still earned 13% more

Friday, March 30

• Exam 2 on Monday• Covers• Chapters 4, 5, 6, and 7 (Page 218)• Notes• Slides• ICAs/OCAs• End of Chapter Questions

• How are the papers shaping?

Excluded topics from Chapter 41. Empirical Evidence on Income

and substitution effects (Page 113)

2. Economic conditions (Page 115)3. The section starting with “The

World War II Experience” (PP 122-128)


• Another study• Gave men and women the same

resumes to apply for jobs waiting on tables

• Probability of a female applicant getting an interview at high- priced restaurants was 40 percentage points lower than male applicant


• Another study• Blind auditions by female

musicians increased their chances of their selection


• Another study• Women were less productive than

men• But the gap between male and

female salary was more than the gap between their productivity

Occupational Segregation

• 1) Across industries• most teachers are women and most

electricians are men

• 2) Within industries• most nurses are women and most

doctors are men

Causes of Occupational Segregation

• 1) Supply Side Factors• Factors affecting supply of

male/female workers • Human Capital Theory• Feedback Effect

Causes of Occupational Segregation

2) Demand Side Factors• Factors affecting demand for workersa) Human Capital Theory

• Productivity• Interruption in work life• Short work life

b) Discrimination

Glass Ceiling

• Implicit barriers to promotion of minorities

• Is there a glass ceiling?• Old-boys network• Male dominated corporate culture• Stereotyped views:

• Balancing act• Family• Not aggressive/strong enough• Not good bosses

• Table 7.2, page 217• Study the Federal Glass Ceiling

Commission’s report on page 218

welcome to econ 325 economics of gender week 9 beginning march 26

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