question

Race

answer

An ethnic group assumed to have a biological basis. It assumes that human differences are based on biology, not culture.

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Ethnicity

answer

Ethnicity means identification with, and feeling part of an ethnic group. An ethnic group shares beliefs, values, habits, customes and norms because of a common background.

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First time in 2000 U.S. Census

answer

Mixed marriages. Becoming more common as society is getting more blended. Makes reporting more complicated.

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Hispanic

answer

Descendents of Spain, Iberean Pennisula, Spain conquered latin America...The Spanish are not Hispanic,approx. 12 M in U.S.

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Largest Wave of Immigration

answer

1990 by a small margin. Different from other major migration that came into NY Harbor..Ellis Island

question

List the various Races

answer

Asian, Black, White and the Ethnicity of Hispanic (Prior to 1970 term did not exist)

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Problems with self-reporting

answer

823 people in the 2000 census said that they were of six races???

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States with more foreign born.

answer

California, NY, NJ, HI, Nevada, TX, MA, AZ, Rhode Island and CT - many are costal or border states.

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Problems with reliable numbers for undocumented migrants that are obtained by

answer

INS. More reliable numbers from PEW Hispanic Foundation.

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Unauthorized immigrants on the

answer

upward trend. Continuation of trent uncertain if we were to have a double recession.

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Net Growth in U.S.

answer

35.8% due to immigration. Overwhelmingly from Mexico, then China, Phillipines, India and Cuba

question

Foreign Born in 2005

answer

37 Million. Unauthorized Migrants 11 M, Naturalized foreign born 11.5 M.

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Unauthorized immigrants are largely

answer

Latin-American. 56% Mexico, 22% other Latin American, 13% Asian, 6% Europe and Canada, 3% African and other

question

Since 2008 Recession those who lost their jobs coming back stronger are

answer

men, unauthorized (better than minorities). Mainly Service Occupations

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Lack of Acculturation of

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Hispanics and in particular Mexicans

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Hispanic Challenge - Prof. Huntington

answer

2,000 mile border. Largest border between 1st world and 3rd country. Scale. From diversity to dominance 1960-2000.

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Hispanic Challenge - Regional Concentration

answer

However, as seen earlier, that appears no longer to be the case.

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Hispanic Challenge - Persistence

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Since the mid 1960s migration of Mexicans has been continuously increasing.

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Hispanic Challenge - Historical Presence

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A few are settlers from land that was owned by Mexico prior to the Mexican-American ware. New arrivals also recall some of the land used to belong to Mexico.

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Age Distribution in Mexico and US

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US - older society (1/4 of US retirement age vs. Mexico - younger society. Median Age for Hispanics 26 yrs. old. Mexicans under 18 - 37%

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Dream Act

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Mexicans able to get a degree but could not get a job because they were not citizens.

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Reasons for migration.

answer

Wage differentials, development of networks, temporary work permits like the bracero program of the 1940s to the mid-1960s. (Bush Admin.) Oriented Mexican workers toward the U.S. labor market instead of toward local jobs and development.

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Normative Thinking

answer

What Should Be.

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Positive Thinking

answer

What Is. Action leads to a reaction. Used in economics.

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Problems in analyzing Economic Problems

answer

1) Perceptions may confuse issues 2) Personal bias 3) Cultural bias 4) Other issues MSN - more liberal Fox - conservative

question

Jayson Blair a black reporter for the NY Times (affirmative action)

answer

Was fired because of numerous false information in his articles. He was discovered because he plagiarized an artcile from the San Antonio Express. White men/women also have been found to be guilty of same crime. Even Supreme Court Justices see the argument differently. Neither decisions based on the constitution.

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Economics the Science of

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How individuals go about the business of satisfying their wants given scarce resources. The word Scarcity is crucial. Scarcity is relative to demand.

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Microeconomics Basic Approach - Endogenous

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Meaning, "solved by the system" X

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Microeconomics Basic Approach - Exogenous

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Values given outside the system - I (income) and P (price). We are interested on how the solutions change when a variable changes.

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Demand for Substitutes

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If demand goes up then price goes up.

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Demand for Compliments

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If demandgoes down then price goes up. (Inverse)

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Demand for Giffen Good when

answer

Price goes up Then demand goes Up.

question

Demand for Inferior Good

answer

When price goes up then demand goes down.

question

What impacts demand?

answer

Price of own good, price of subsitute and compliment goods, income, Preferences, Number of Buyers

question

What impacts quantity supplied?

answer

Price of own good, price of substitute and compliment goods, cost of inputs, technology, number of sellers

question

On a Demand and Supply of Labor Graph what is on the Y axis and what is on the X axis?

answer

Y = w and X is L

question

Why does demand for labor slope downward?

answer

Law of diminishing marginal returns, subsitituion effect and scale effects. (mergers)

question

If wages are greater than equilibrium wages then

answer

There is an Excess Supply which implies there is unemployment.

question

If wages are less than equilibrium wages then

answer

There is an Excess of Demand which implies there is a tight labor market.

question

Demand Shocks to Equilibrium

answer

Output becomes more or less "popular". Shift to more efficient capital. Competitiveness in output market changes, Technology

question

Supply Shocks to Equilibrium

answer

Change in labor size. Women enter the market place, immigration, taxes (marriage penality). Change in Quality of Labor. Education and cultural change.

question

Price Ceilings and Floors

answer

(Remember they look opposite in a graph than what you think.) Remember to look at geometric shapes - rectangles for answers. Page 15 at the beginning of the book past the charts.

question

An Employer will hire as long as

answer

MRP is greater than or equal to the wage. Where MRP is the marginal value of adding one additional worker.

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The equation for MRP is

answer

P (output price) * MPL (MPL is not determined by personal characteristics but rather K and Tech.) P * MPL

question

The equation for MPL is

answer

The Change in Total Product divided by the change in Labor. ^TP/^L

question

The equaton for Total Revenue is

answer

TP * P

question

The equation for Total cost is

answer

TFC + TVC

question

The equation for Total Variable Costs is

answer

L * w

question

The equation for Profit is

answer

TR - TC Profit is maximized when MRP = w or MR=MC

question

The equation for MR is

answer

^TR/^TP

question

The equation for MC is

answer

^TC/^TP and ^TVC/^TP

question

As fixed cost decrease

answer

The number of Workers Hired Remains Unchanged

question

As fixed costs increases

answer

The number of Workers hired remains unchanged.

question

Women earn 75% of

answer

What men earn. Friction - not caused by employers but they get a bad rap. Society sets a standard - men in daycare centers non-existent.

question

Assumptions in Discrimination model

answer

Pure competition and homogenous workers. If workers are indeed homogenous and they receive different wages then that would imply there was discrimination. MUST BE HOMOGENOUS for us to detect discrimination.

question

Three sources of wages disparities.

answer

Non-market discrimination (men in daycare), Past-Employer Discrimination (past discriminating hiring practices - mouth to mouth hiring.) and Current Employer Discrimination - prejudice, consumer preferences (Hooters)

question

Distribution of Annual Earnings changes in the

answer

$50,000 to 74,000 range.

question

What countries do women make nearly as much as men?

answer

Belgium (90%), France (89.9%), Australia (86.8%)

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Proportion Female for Selected Occupations in low end.

answer

Mechanics, roofers, carpenters, plumbers, electricians, airplane pilots, clergy 11.2

question

Definition for Labor Market Discrimination

answer

It exists when two equally qualified individuals are treated differently solely on the basis of their gender, race, ethnicity, disability, etc.

question

Those affected by labor market discrimination

answer

View the returns on human captial investment to be lower and will not have incentive to invest in human capital.

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Barriers in the labor market. - Glass ceiling

answer

Derived from three sources: Sopcietal/non-market, business (past/present employer) and government.

question

Glass Ceiling reasons under the control of bs.

answer

1) Outreach and recruitment practices that do not seek out or reach or recruit minorities and women. (Has been changed). 2) Corporate climates that alienate and isolate minorities nd women (changed). 3) Pipeline Barriers that directly affect opportunity for advancement. 4) Initial placement and clustering in staff jobs or in highly technical and professonal jobs that are not on the career track to the top. 5) Lack of mentoring 6) Lack of management training 7) Lack of opportunities for career development, tailored training, and rotational job assignments that are on the revenue-producing side of the business. 8) Little or no access to critical developmental assignments such as memberships on highly visible task forces and committees. Special or different standards for performance evaluation.9) Biased rating and testing systems. 10) Little or no access to niformal networks of communication 11) Counterproductive behavior and harassment by colleagues.

question

Glass Ceiling reasons under the control of the government.

answer

1) Lack of bigorous, consistent monitoring and law enforcement. 2) Weaknesses in the formulation and collection of employment-related data which makes it difficult to ascertain the status of groups at the managerial level and to disaggregate the data. 3) Inadequate reporting and dissemination of information relevant to glass ceiling issues.

question

Measuring discrimination is not simple because

answer

Looking at only wages does not represent the true level of discrimination since it is likely that personal characteristics may account for some of the disparity. Wages can be impacted by geography and not staying in the labor force instead of true discrimination.

question

How much less does a woman earn in comparison to a man

answer

75% But when adjusted for human capital - only a dime less.

question

The Overcrowding Model of labor market segregation.

answer

Some jobs are male jobs and some are female jobs. Some jobs are white jobs and others are minority jobs. This model assumes that F and M workers are perfect substitutes for each other. At first, assume that both jobs on average pay the same wage. If M workers can move easily between job types, yet F workers cannot - the supply of workers goes down. If F workers cannot move between jobs then their wages will fall.

question

Gary Becker Model of Labor Mrkt. Discrimination assumed that

answer

The U= Utility of the employer W=white and B=Black dU/dprofit >0 dU/dW > 0 dU/dB < 0 If you want maximum profit as an employer you would choose white workers over black workers.

question

Becker - Employee Discrimination - Nonpreferred worker equation - an employer may use generalized information about the employee and may discriminate on either actual or perceived information.

answer

WP/(1+d)

question

Becker - Employee Discrimination - Preferred worker equation - an employer may use generalized information about the employee and may discriminate on either actual or perceived information.

answer

Wnp * (1+d)

question

Gary Becker Model would not exist in a

answer

Purely Competitive Market. It can persist if the firm as monopsony power, supervisors that are discrimination or customers that are discriminating.

question

Discrimination exists statistically when

answer

Preconceptons are based on accurate average observations. This can be called feed-back effects.

question

Customer Discrimination - Equation for Prefer males

answer

Pm= Pf(1+d)

question

Customer Discrimination - Equation for Prefer females

answer

Pf= Pm(1+d)

question

Solomon Polachek - Human Capital Theory

answer

Some jobs provide a smaller or larger penalty of leaving the workforce for some amount of time.

question

Institutional Models of Discrimination

answer

These models assume that the discrimination occurs as part of the organizations internal structure. The internal labor market (promote from within), primary and secondary jobs (only promote from a certain type of entry jobs.) and feedback effect. (Sometimes employees and employers may discriminate by bringing into the work place the behavior exhibited in the household. Gender roles play out. (Secretaries - Moms take care of everything.)

question

Three sources for wage disparities.

answer

1)Non-market Discrimination (lower productivity due to lack of training/schooling, Geographical, Different preferences in terms of labor/leisure - Daycare) 2) Past-Employer Discrimination (Mouth to mouth hiring preferences) and Current Employer Discrimination (Prejudice and consumer preferences (Hooters).

question

Segregation Indexes

answer

One way to establishing if jobs are distributed in a gender, race, and ethnic blind form is by looking at whether certain jobs are more likely to have a larger percent of a certain type of employees. More likely to be a male or female job. The index attempts to review whether there is a "larger" than expected presence of a certain group in any given job category.

question

Using the Segregation Index 0 indicates

answer

No segregation

question

In the Segregation Index a 1 indicates

answer

Complete segregation.

question

In the Duncan Segregation Index Mi and Fi are

answer

The percentage of the individuals in a given group.

question

The Duncan Index has a tendency to

answer

Overstate Segregation. One group must move to the other group which could displace workers out of the industry. It can be used to compare segregation over time and across countries.

question

In the Ip Segregation Index Workers are

answer

Not moved to another industry. They are not displaced but stay within the industry. They are moved around but not moved OUT.

question

Even if you are able to eradicate discrimination

answer

It takes awhile for the change to show up in society, business or government.

question

If a woman moves due to her husband's job relocating

answer

The woman loses seniority and therefore earnings.

question

Segregation is likely to have a large impact on

answer

wages. Jobs that have genearally more women in them are likely to have lower wages.

question

Education and lifetime wage potential - Human Capital

answer

Nonpecuniary (non-monetary) issues. The utility derived from attending school, working in a office vs. outdoors.

question

It is more difficult to finance human capital than

answer

It is to finance physical capital. With physical capital banks are willing to make a loan on collateral. There is more risk involved in financing human capital. 50% of students who start college do not finish.

question

A Bachelors degree in today's terms is the same as

answer

A high school diploma in the 1980.

question

Compared to the 1970's American women have achieved

answer

Parity in education attainments.

question

A white male college graduate is more likely to achieve managerial or professional status than

answer

Black male counterpart.

question

Black male with less than a high school degree is more likely to be an operator or fabricator than

answer

The white male counterpart.

question

A white female with a high school degree is more likely to be in a

answer

Technical/sales/administrative job than the black female counterpart.

question

A black female college graduate is about as likely as her white counterpart to be in a

answer

Managerial or professional job.

question

Gender, race and educaton have an impact on the

answer

Type of jobs and that has an impact on the wages.

question

Human Capital is

answer

Expensive and uncertain. The marital status of the individual may have some bearing on the investment. Male either single or divorced is unlikely to get a college degree but women on the other hand if they are divorced or single are MORE like to receive a college educaton.

question

Why is it less likely that Blacks and Hispanics will get higher degrees that a bachelors degree?

answer

The pool of Blacks and Hispanics is smaller.

question

More Women than Men are getting Bachelors Degrees and some fields that we see more women entering are

answer

Pediatricians, Dentists, Pharmacist, Business. No many in quantative areas such as Engineering.

question

Advanced degrees in the late 1990's

answer

Accelerated. Reason - Masters Degrees are the equivalent of a 1980's Bachelor's Degree. 35% of the Population receive Bachelor's Degrees.

question

"The state government should not cut funding to education" is an example of a

answer

Normative Statement

question

In a simple economy with only 2 goods and no non-labor income, for utility maximizing individual the exogenous variables are:

answer

P1, P2 and I

question

Decrease in supply might come from

answer

An increase in the price of inputs.

question

An increase in supply together with a decrease in demand leads tro

answer

It depends on the magnitude of the shifts.

question

If the market price is higher than the equilibrium price, that typically will result in

answer

Excess supply

question

If the market price is lower than the equilibrium price, it is said that typically

answer

Buyers will bid up the price.

question

The slope of the MRPL is mainly due to the

answer

Diminishing marginal productivity.

question

The first order condition from the profit maximizaton decision by the employer says that for the marginal worker: p*f'(L) should be equal to

answer

The Wage

question

Making a generalization based on some group's characteristics is called

answer

Profiling

question

The Marginal Revenue per unit curve for a typical small firm in a perfectly competitive market is

answer

Horizontal

question

According to the most recent earnings data, the group with the average highest earnings is

answer

Asian males

question

According to the most recent earnings data, the group with the lowest average earnings is

answer

Hispanic females

question

If the HS wage is 32,000 and the college wage is 40,000 the wage growth is 4% the annual interest rate is 5% and the college premium is 2% the present value for the wage 5 years from today for a HS graduate is

answer

$30,505

question

If the HS wage is 32,000 and the college wage is 40,000 the wage growth is 4% and the annual interest rate is 5% and the college premium is 2% the present value for the wage 55 years from today for a HS graduate is

answer

$18,905

question

If the HS wage is 32,000 and the college wage is 40,000 the wage frowth is 4% and the annual interest rate is 5% and the colllege premium is 2% the present value for the wage 55 years from today for a College Grad is

answer

$67,371

question

The rate of return from attending college will decrease if

answer

Time off from work is increased.

question

If student loans are needed to attend college, then the rate of return from college will

answer

Go Down

question

The Duncan index of segregation will be zero when we have

answer

No Segregation.

question

Taxi Drivers M(30) W(20); Teachers M(10)W(50); Farmers M(50)W(10) input these numbers into the Duncan Index.

answer

The value of the Duncan Index is 51.38

question

If instead of having Mi-Fi in the formjual for the Duncan Index we have Fi-Mi, the value of the Index

answer

Does not change because of the absolute value component.

question

If we disaggregate the occupations, meaning a higher number of occupations, the value of the Duncan Index most liely

answer

Will Go Up.

question

Considering the Commission formed and chaired by the Secretary of Labor, which of the following is not listed as one of the sources for the glass ceiling?

answer

Media-No....Sources are Society, Business and Government

question

Which are the following reasons for discrimination is listed under the control of business?

answer

Pipeline barriers, Lack of mentoring, biased rating and testing systems (there are several more) ..........Lack of vigorous and consistent law enforcement is not a business but a government control.

question

Considering the employer discrimination model with perfect competition in the goods market and homogenous workers, if the MP*L for white workers = $12/hr, an employer with d=0 will pay at most for a black worker

answer

$12/hr

question

a.Considering the employer discrimination model with perfect competition in the goods market and homogenous workers - If the MP*L for white workers = $12/hr, and employer with d>0 What is the MP*L for black worker? b.Who will be hired if W*b=9 and d=.3? c. If the employer is indifferent between hiring a black or white worker and d=.5

answer

a.$12/hr - They are both equally productive - not wage b. 12/1.3 = $9.23 Black only c. ? 12/1.5 = $8

question

The employer discrimination model predicts that the employers with d>0 have

answer

Lower Profits

question

At the end, the only employers remaining or able to enter this market will have

answer

d=0

question

Employer discrimination might persist if

answer

Firms have monopsony power, Supervisors, employees, or customers are discriminating or we have barriers to competitve wages, like unions.

question

According to Black and Brainerd 2004, what helped reduce the gender gap in earnings in concentrated industries?"

answer

Trade

question

Considering the customer discrimination model with homogenous goods/workers, if for gasoline the P*w = $2/gal. a customer with d=.5 will pay at most for gasoline from a black attendant

answer

$1.33/gal.

question

a) According to the Employee discrimination model with homogenous workers and two types of jobs: Type 1 with NH workers only and Type 2 with both NH and H workers. If wages for NH in type 1 job=$16/hr. what would be the reservation wage for NH for job type 2 if d=.5? b) What would be the reservation wage for NH for job type 2 if d=.25? c) Where would the NH worker choose to work is W2NH=24 and d=1? d) If employers do not have a taste for discrimination, NH workers will tend to concentrate on

answer

a. $32/hr b. $21.33/hr. c. Type 1 job d. Type 1 Job

question

"The unemployment rate for Hispanics is higher than for Whites" is an example of a

answer

Positive statement

question

An increase in Demand might come from

answer

An increase in Income for normal goods.

question

A Decrease in Supply might come from

answer

Bad weather

question

An increase in supply together with a decrease in demand leads to

answer

A decrease in the equilibrium price.

question

The latest data suggest that the wage ratio for all races and ethnicities is around

answer

80%

question

In terms of their educational attainment, the category witht he highest earnings is

answer

Professional

question

a)HS Wage 27,000; College Wage 42,000; wage growth rate 5%, Annual Int. 6% and college premium. The present value for the wage 6 years from today for HS grad is? b) The present value for the wage 6 years from today for a college graduate is?

answer

a. $25,507 b. $44,434

question

The rate of return from attending college will decrese if

answer

Interest rates go up.

question

If Student loans are needed to attend college, then the rate of return from college will

answer

Go down.

question

Bus Drivers M(40) F(50); Cashiers M(10)F(50); Architects M(50)W(10) What is the value of the Duncan Index?

answer

40.91

question

If we disaggregate more the number of occupation, the value of the duncan index most likely

answer

Will go up.

question

One of the predictions of the employee discrimination model is that it will lead to

answer

Complete segregtion in the labor force.

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