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Ch19mic pendapatan dan diskriminasi
 

Ch19mic pendapatan dan diskriminasi

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    Ch19mic pendapatan dan diskriminasi Ch19mic pendapatan dan diskriminasi Presentation Transcript

    • Chapter 19 Earnings and Discrimination© 2002 by Nelson, a division of Thomson Canada Limited
    • In this chapter you will…•• Examine how wages compensate for differences Examine how wages compensate for differences in job characteristics. in job characteristics.•• Learn and compare the human-capital and Learn and compare the human-capital and signalling theories of education. signalling theories of education.•• Learn why wages rise above the level that Learn why wages rise above the level that balances supply and demand. balances supply and demand.•• Consider why it is difficult to measure the impact Consider why it is difficult to measure the impact of discrimination on wages. of discrimination on wages.•• See when market forces can and cannot provide See when market forces can and cannot provide a natural remedy for discrimination. a natural remedy for discrimination.•• Consider the debate over comparable worth as a Consider the debate over comparable worth as a system for setting wages. system for setting wages.Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 19: Page 2
    • Earnings and Discrimination•• Differences in Earnings in Canada today: Differences in Earnings in Canada today: – The typical physician earns about – The typical physician earns about $200,000 a year. $200,000 a year. – The typical police officer earns about – The typical police officer earns about $50,000 a year. $50,000 a year. – The typical farm worker earns about – The typical farm worker earns about $20,000 a year. $20,000 a year.Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 19: Page 3
    • Earnings and Discrimination•• What causes earnings to vary so much? What causes earnings to vary so much? – Wages are governed by labour supply – Wages are governed by labour supply and labour demand. and labour demand. – Labour demand reflects the marginal – Labour demand reflects the marginal productivity of labour. productivity of labour. – In equilibrium, each worker is paid the – In equilibrium, each worker is paid the value of his or her marginal contribution value of his or her marginal contribution to the economy’s production of goods to the economy’s production of goods and services. and services.Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 19: Page 4
    • SOME DETERMINANTS OF EQUILIBRIUM WAGES•• Compensating differentials Compensating differentials•• Human capital Human capital•• Ability, effort, and chance Ability, effort, and chance•• signalling signalling•• The superstar phenomenon The superstar phenomenonMankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 19: Page 5
    • Compensating Differentials•• Compensating differential refers to a Compensating differential refers to a difference in wages that arises from difference in wages that arises from nonmonetary characteristics of different nonmonetary characteristics of different jobs. jobs. – Coal miners are paid more than others – Coal miners are paid more than others with similar levels of education. with similar levels of education. – Night shift workers are paid more than – Night shift workers are paid more than day shift workers. day shift workers. – Professors are paid less than lawyers – Professors are paid less than lawyers and doctors, who have similar amounts and doctors, who have similar amounts of education. of education.Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 19: Page 6
    • Human Capital•• Human capital is the accumulation of Human capital is the accumulation of investments in people, such as education investments in people, such as education and on-the-job training. and on-the-job training.•• The most important type of human capital The most important type of human capital is education. is education.•• Education represents an expenditure of Education represents an expenditure of resources at one point in time to raise resources at one point in time to raise productivity in the future. productivity in the future.Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 19: Page 7
    • Human Capital•• In general, workers with more human capital earn In general, workers with more human capital earn more, on average, than workers with less human more, on average, than workers with less human capital. capital.•• University graduates in Canada earn earn about University graduates in Canada earn earn about 58 percent more than workers with a high school 58 percent more than workers with a high school diploma. diploma.•• Education raises wages because Education raises wages because – firms (demanders of labour) are willing to pay – firms (demanders of labour) are willing to pay more for the highly educated because they more for the highly educated because they have higher marginal products. have higher marginal products. – Workers (suppliers of labour) are willing to pay – Workers (suppliers of labour) are willing to pay the costs of education only if there is a reward the costs of education only if there is a reward for doinf so. for doinf so.Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 19: Page 8
    • CASE STUDY: The Value of Skill•• Figure 19-1 shows that in the United States the Figure 19-1 shows that in the United States the ratio of the average earnings of university ratio of the average earnings of university graduates to the average earnings of high-school graduates to the average earnings of high-school graduates has grown steadily over time. graduates has grown steadily over time.•• In 1982, the U.S. university graduates earned 52 In 1982, the U.S. university graduates earned 52 percent more than high-school graduates; in percent more than high-school graduates; in 1994, they earned about 75 percent more. 1994, they earned about 75 percent more.•• The wage premium in Canada has not grown over The wage premium in Canada has not grown over this period. In 1982, university graduates earned this period. In 1982, university graduates earned about 60 percent more than high school about 60 percent more than high school graduates; in 1994 they earned about 57 percent graduates; in 1994 they earned about 57 percent more. more.Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 19: Page 9
    • Table 19-1. The Ratio of University of UniversityGraduates to Earnings of High-School Graduates Copyright©2004 South-Western
    • CASE STUDY (cont’d): The Value of Skill•• Why the growing wage premium in the Why the growing wage premium in the U.S.? U.S.? – International trade has increased the – International trade has increased the demand for skilled labour. demand for skilled labour. – Increased computerization has caused – Increased computerization has caused the demand for skilled workers to rise the demand for skilled workers to rise and the demand for unskilled workers to and the demand for unskilled workers to fall. fall.Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 19: Page 11
    • CASE STUDY (cont’d): The Value of Skill•• Why is there no increase in the relative Why is there no increase in the relative earnings of Canadian skilled workers? earnings of Canadian skilled workers? – The relative supply of skilled workers – The relative supply of skilled workers has increased faster in Canada. has increased faster in Canada. – The relative supply of skilled labour has – The relative supply of skilled labour has kept pace with the increase in the kept pace with the increase in the demand for skilled labour. The earnings demand for skilled labour. The earnings gap between skilled and unskilled gap between skilled and unskilled labour has remained constant. labour has remained constant.Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 19: Page 12
    • Ability, Effort, and Chance•• Natural ability is important for workers in Natural ability is important for workers in all occupations. all occupations.•• Many personal characteristics determine Many personal characteristics determine how productive workers are and, how productive workers are and, therefore, play a role in determining the therefore, play a role in determining the wages they earn. wages they earn.•• Some people work hard; others are lazy. Some people work hard; others are lazy. We should not be surprised to find that We should not be surprised to find that those who work hard are more productive those who work hard are more productive and earn higher wages. and earn higher wages.•• Chance also plays a role in determining Chance also plays a role in determining wages. wages.Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 19: Page 13
    • An Alternative View of Education: signalling•• Firms use educational attainment as a way Firms use educational attainment as a way of sorting between high-ability and low- of sorting between high-ability and low- ability workers. ability workers. – It is rational for firms to interpret a – It is rational for firms to interpret a college degree as a signal of ability college degree as a signal of ability because it is easier for a high ability because it is easier for a high ability person to earn a university degree. person to earn a university degree.•• It is similar to the signalling theory in It is similar to the signalling theory in advertisement. advertisement.Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 19: Page 14
    • An Alternative View of Education: signalling•• There is now two views on education: There is now two views on education: – Human-capital theory – Human-capital theory – Signalling theory – Signalling theory•• Human-capital view: education makes Human-capital view: education makes workers more productive workers more productive•• Signalling view: education is correlated Signalling view: education is correlated with natural ability with natural abilityMankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 19: Page 15
    • An Alternative View of Education: signalling•• Predictions on policies: Predictions on policies: – Human-capital view: increasing – Human-capital view: increasing education levels for all workers will education levels for all workers will increase productivity and thereby increase productivity and thereby wages. wages. – Signalling view: education does not – Signalling view: education does not enhance productivity sor raising the enhance productivity sor raising the education level of all workers does not education level of all workers does not affect wages. affect wages.•• The truth lies somewhere between these The truth lies somewhere between these two extremes. two extremes.Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 19: Page 16
    • The Superstar Phenomenon•• Superstars arise in markets that exhibit the Superstars arise in markets that exhibit the following characteristics: following characteristics: – Every customer in the market wants to enjoy – Every customer in the market wants to enjoy the good supplied by the best producer. the good supplied by the best producer. – The good is produced with a technology that – The good is produced with a technology that makes it possible for the best producer to makes it possible for the best producer to supply every customer at a low cost. supply every customer at a low cost.•• There are no superstar carpenters because he or There are no superstar carpenters because he or she can only provide their services to a limited she can only provide their services to a limited market, all other things being equal. market, all other things being equal.Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 19: Page 17
    • Above-Equilibrium Wages: Minimum-Wage Laws, Unions, and Efficiency Wages•• Why are some workers’ wages set above Why are some workers’ wages set above the level that brings supply and demand the level that brings supply and demand into equilibrium? into equilibrium? – Minimum-wage laws – Minimum-wage laws – Market power of labour unions – Market power of labour unions – Efficiency wages – Efficiency wagesMankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 19: Page 18
    • Above-Equilibrium Wages: Minimum-Wage Laws, Unions, and Efficiency Wages•• Unions Unions – A union is a worker association that – A union is a worker association that bargains with employers over wages bargains with employers over wages and working conditions. and working conditions.•• Strike Strike – A strike refers to the organized – A strike refers to the organized withdrawal of labour from a firm by a withdrawal of labour from a firm by a union. union.Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 19: Page 19
    • Above-Equilibrium Wages: Minimum-Wage Laws, Unions, and Efficiency Wages•• Efficiency Wages Efficiency Wages – The theory of efficiency wages holds – The theory of efficiency wages holds that a firm can find it profitable to pay that a firm can find it profitable to pay high wages because doing so increases high wages because doing so increases the productivity of its workers. High the productivity of its workers. High wages may: wages may: •• reduce worker turnover. reduce worker turnover. •• increase worker effort. increase worker effort. •• raise the quality of workers that apply for raise the quality of workers that apply for jobs at the firm. jobs at the firm.Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 19: Page 20
    • THE ECONOMICS OF DISCRIMINATION•• Discrimination occurs when the Discrimination occurs when the marketplace offers different opportunities marketplace offers different opportunities to similar individuals who differ only by to similar individuals who differ only by race, ethnic group, sex, age, or other race, ethnic group, sex, age, or other personal characteristics. personal characteristics.Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 19: Page 21
    • THE ECONOMICS OF DISCRIMINATION•• Although discrimination is an emotionally Although discrimination is an emotionally charged topic, economists try to study the charged topic, economists try to study the topic objectively in order to separate myth topic objectively in order to separate myth from reality. from reality.Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 19: Page 22
    • Measuring labour-Market Discrimination•• Discrimination is often measured by looking at Discrimination is often measured by looking at the average wages of different groups. the average wages of different groups.•• Even in a labour market free of discrimination, Even in a labour market free of discrimination, different people have different wages. different people have different wages.•• People differ in the amount of human capital they People differ in the amount of human capital they have and in the kinds of work they are willing and have and in the kinds of work they are willing and able to do. able to do.•• Simply observing differences in wages among Simply observing differences in wages among broad groups—white and black, men and women broad groups—white and black, men and women —says little about the prevalence of —says little about the prevalence of discrimination. discrimination.Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 19: Page 23
    • Measuring labour-Market Discrimination•• Because the differences in average wages Because the differences in average wages among groups in part reflect differences in among groups in part reflect differences in human capital and job characteristics, human capital and job characteristics, they do not by themselves say anything they do not by themselves say anything about how much discrimination there is in about how much discrimination there is in the labour market. the labour market.Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 19: Page 24
    • Discrimination by Employers•• Firms that do not discriminate will have Firms that do not discriminate will have lower labour costs when they hire the lower labour costs when they hire the employees discriminated against. employees discriminated against.•• Nondiscriminatory firms will tend to Nondiscriminatory firms will tend to replace firms that discriminate. replace firms that discriminate.•• Competitive markets tend to limit the Competitive markets tend to limit the impact of discrimination on wages. impact of discrimination on wages.•• Firms that do not discriminate will be Firms that do not discriminate will be more profitable than those firms that do more profitable than those firms that do discriminate. discriminate.Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 19: Page 25
    • CASE STUDY: Explaining the Gender WageGap Table 19-1. Ratio of female to male earnings by education Education Female to Male Earnings ratio Less than high school 69.1% High school 78.4 Incomplete postsecondare 80.5 Postsecondare 79.4 diploma/certificate Postsecondary degree 84.5 Overall 80.3Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 19: Page 26
    • CASE STUDY (cont’d): Explaining theGender Wage GapMankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 19: Page 27
    • CASE STUDY (cont’d): Explaining theGender Wage GapMankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 19: Page 28
    • Discrimination by Customers and Governments•• Although the profit motive is a strong Although the profit motive is a strong force acting to eliminate discriminatory force acting to eliminate discriminatory wage differentials, there are limits to its wage differentials, there are limits to its corrective abilities. corrective abilities. – Customer preferences – Customer preferences – Government policies – Government policiesMankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 19: Page 29
    • Discrimination by Customers and Governments•• Customer preferences: Customer preferences: – If customers have discriminatory – If customers have discriminatory preferences, a competitive market is preferences, a competitive market is consistent with a discriminatory wage consistent with a discriminatory wage differential. differential. – This will happen when customers are – This will happen when customers are willing to pay to maintain the willing to pay to maintain the discriminatory practice. discriminatory practice.Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 19: Page 30
    • Discrimination by Customers and Governments•• Government policies: Government policies: – When the government mandates – When the government mandates discriminatory practices or requires discriminatory practices or requires firms to discriminate, this may also lead firms to discriminate, this may also lead to discriminatory wage differentials. to discriminatory wage differentials.Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 19: Page 31
    • Summary•• Workers earn different wages for many Workers earn different wages for many reasons. reasons.•• To some extent, wage differentials To some extent, wage differentials compensate workers for job attributes. compensate workers for job attributes.•• Workers with more human capital get paid Workers with more human capital get paid more than workers with less human more than workers with less human capital. capital.Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 19: Page 32
    • Summary•• The return to accumulating human capital The return to accumulating human capital is high and has increased over the past is high and has increased over the past decade. decade.•• There is much variation in earnings that There is much variation in earnings that cannot be explained by things economists cannot be explained by things economists can measure. can measure.Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 19: Page 33
    • Summary•• The unexplained variation in earnings is The unexplained variation in earnings is largely attributable to natural ability, effort, largely attributable to natural ability, effort, and chance. and chance.•• Some economists have suggested that Some economists have suggested that more-educated workers earn higher wages more-educated workers earn higher wages because workers with high natural ability because workers with high natural ability use education as a way to signal their high use education as a way to signal their high ability to employers. ability to employers.Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 19: Page 34
    • Summary•• Wages are sometimes pushed above the Wages are sometimes pushed above the equilibrium level because of minimum- equilibrium level because of minimum- wage laws, unions, and efficiency wages. wage laws, unions, and efficiency wages.•• Some differences in earnings are Some differences in earnings are attributable to discrimination on the basis attributable to discrimination on the basis of race, sex, or other factors. of race, sex, or other factors.•• When measuring the amount of When measuring the amount of discrimination, one must correct for discrimination, one must correct for differences in human capital and job differences in human capital and job characteristics. characteristics.Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 19: Page 35
    • Summary•• Competitive markets tend to limit the Competitive markets tend to limit the impact of discrimination on wages. impact of discrimination on wages.•• Discrimination can persist in competitive Discrimination can persist in competitive markets if customers are markets if customers are – willing to pay more to discriminatory – willing to pay more to discriminatory firms, firms, – or if the government passes laws – or if the government passes laws requiring firms to discriminate. requiring firms to discriminate.Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 19: Page 36
    • The EndMankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 19: Page 37