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Microeconomics
Opening
Prayer
Quizmaster
Rival
vs.
Non-Rival
Excludable
vs.
No-Excludable
Wage Gaps
Why do men earn more
than women?
Why hire a man for
$1.00 if woman will do
the same work for
only 77 cents?
Does not make sense
Economic
Discrimination
Difference due to
irrelevant characteristic
Discriminating
$
Q
$15
D
S
$10
$20
$25
50 100
0 75
25
No women
No blacks
No Mormons
No Discrimination
Discrimination
is
Expensive
Wage Gap
Education
Experience
Preferences
Gifts
Compensating
Differentials
95% of job-related
deaths are men.
America’s 10 Most Dangerous Jobs
Per 100,000
Average 3.3
Fishing 200
Logging 62
Pilot 57
Farm & Ranch 36
Roofers 35
Ironworkers 30
Sanitation 25
Machinist 19
Truck Driver 18
Construction 18
Source: Bureau of Labor
1. Men disproportionately gravitate towards higher paying occupations in technology and hard sciences (e.g.,
petroleum engineer).
2. Men disproportionately choose higher-risk, higher paying occupations with greater safety risks for
occupational injuries and fatalities (e.g., oil field worker, roofer, and logging).
3. Men are more willing to work outdoors in uncomfortable, physically demanding work environments
(construction, oil field workers, commercial fishing, logging).
4. Men are more willing than women to choose demanding, intense jobs where you can’t check out at the
end of the work day (e.g., corporate attorney, senior White House staff).
5. Men select jobs with higher pay but with lower personal fulfillment (tax accountant).
6. Men select jobs with higher financial and emotional risks (e.g., venture capitalist).
7. Men are more willing than women to work the worst shifts during the worst hours.
8. Men often choose higher paying subfields (e.g., surgery and anesthesiology).
9. Men are more willing to work in dirty or unpleasant environments with minimal human contact (e.g.,
prison guard, steel worker, truck drivers).
10. Men work longer hours per week than women on average.
11. Men more frequently than women invest in updating their skills with greater financial payoffs (e.g.,
master’s degree in computer technology vs. master’s degree in education).
12. Men are more likely than women to have more years of continuous experience in their current
occupation.
13. Men are more likely than women to have more years of recent, uninterrupted experience with their
current employer.
14. More work more weeks during the year than women, on average.
15. Men are less likely than women to be absent from work (e.g., doctor’s visits, sick days, taking time off
when children are sick, etc.).
16. Men are more willing than women to tolerate longer commute times.
17. Men are more willing to relocate, especially to undesirable locations at their company’s request.
18. Men are more willing than women, on average, to travel extensively on the job.
19. Men are more willing than women to take the risk of a variable income, e.g., to be paid by commission vs.
a fixed salary.
20. Men often produce more output, e.g., scholarly research articles for university professors.
Adjust for all factors
No significant difference

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Micro 21.pdf

  • 1.
  • 7.
  • 8.
  • 9.
  • 10. Wage Gaps Why do men earn more than women?
  • 11.
  • 12. Why hire a man for $1.00 if woman will do the same work for only 77 cents? Does not make sense
  • 14.
  • 15. Discriminating $ Q $15 D S $10 $20 $25 50 100 0 75 25 No women No blacks No Mormons No Discrimination
  • 19. America’s 10 Most Dangerous Jobs Per 100,000 Average 3.3 Fishing 200 Logging 62 Pilot 57 Farm & Ranch 36 Roofers 35 Ironworkers 30 Sanitation 25 Machinist 19 Truck Driver 18 Construction 18 Source: Bureau of Labor
  • 20. 1. Men disproportionately gravitate towards higher paying occupations in technology and hard sciences (e.g., petroleum engineer). 2. Men disproportionately choose higher-risk, higher paying occupations with greater safety risks for occupational injuries and fatalities (e.g., oil field worker, roofer, and logging). 3. Men are more willing to work outdoors in uncomfortable, physically demanding work environments (construction, oil field workers, commercial fishing, logging). 4. Men are more willing than women to choose demanding, intense jobs where you can’t check out at the end of the work day (e.g., corporate attorney, senior White House staff). 5. Men select jobs with higher pay but with lower personal fulfillment (tax accountant). 6. Men select jobs with higher financial and emotional risks (e.g., venture capitalist). 7. Men are more willing than women to work the worst shifts during the worst hours. 8. Men often choose higher paying subfields (e.g., surgery and anesthesiology). 9. Men are more willing to work in dirty or unpleasant environments with minimal human contact (e.g., prison guard, steel worker, truck drivers). 10. Men work longer hours per week than women on average.
  • 21. 11. Men more frequently than women invest in updating their skills with greater financial payoffs (e.g., master’s degree in computer technology vs. master’s degree in education). 12. Men are more likely than women to have more years of continuous experience in their current occupation. 13. Men are more likely than women to have more years of recent, uninterrupted experience with their current employer. 14. More work more weeks during the year than women, on average. 15. Men are less likely than women to be absent from work (e.g., doctor’s visits, sick days, taking time off when children are sick, etc.). 16. Men are more willing than women to tolerate longer commute times. 17. Men are more willing to relocate, especially to undesirable locations at their company’s request. 18. Men are more willing than women, on average, to travel extensively on the job. 19. Men are more willing than women to take the risk of a variable income, e.g., to be paid by commission vs. a fixed salary. 20. Men often produce more output, e.g., scholarly research articles for university professors.
  • 22. Adjust for all factors No significant difference