1 Answer the following in 150 words or less Discuss the impl

1. Answer the following in 150 words or less:

Discuss the implications of employer discrimination against black workers for (a) the employment decisions of the firm, (b) for the profitability of the firm, and (c) for the black-white wage ratio in the labor market.

Multiple choice

2. Which of the following statements regarding gender differences in international labor markets is true?

A. The difference in male and female wages in the United States is less than in almost any other developed country.

B. The difference in male and female wages in the United States is about the average of other developed countries.

C. Men and women are typically employed at the same rate in developed countries.

D. There is a sizeable wage gap between men and women in most developed countries.

E.   There is no discernable wage gap between men and women in most developed countries.

Solution

1. Employer dicrimination against the black workers can be shown by their employers in many ways. It might be shown in the employer\'s employment choice or the wages paid to the workers or even the kind of work provided to the workers.

a) Employment decisions : These are affected significantly due to the discrimination against black workers. Employers prefer white workers over black workers and hence this leads to the black employers not being hired. Thus, the employers technically have a much smaller pool of workers to choose from if they don\'t employ black workers.

b) Profitability of the firm: These decisions affect the profitability of the firm, as a lower pool of workers would mean lower supply of workers. This would increase their wages which would hurt the profitability.

c) Black-white wage ratio : Discrimination against black workers would deteriorate the black white wage ratio as the blacks would be paid far lower than the white workers. Due to the lack of jobs for black workers, even the workers would be ready to work at very low wages.

2. The correct answer is (D) i.e there is sizeable wage gap between men and women in most developed countries.