Discrimination? Draw simple labor supply and demand graphs for the occupations o

Question

Discrimination?

Draw simple labor supply and demand graphs for the occupations of school teachers and plumbers to show the labor market in each profession. Assume that some workers prefer to clean drains for a living, and some prefer to teach children, but that all will change occupations if the wages are high enough.

Now assume that men face discrimination that prevents them from becoming teachers; show and explain the effect of this discrimination on wages and labor supply in both occupations graphically and in your own words.

Show the reduction in output from discrimination. Show the economic gains from eliminating discrimination. With such gains, why has it been so difficult to enact and enforce anti-discrimination policies?

Review Gerald Friedman, “The Wages of Gender,” Real World Micro, 8.3. Why are women in low-wage jobs? Do they prefer lower wages?  

Explanation / Answer

With the elimination of discrimination, greater variety of jobs are available to all. Additionally, the wages of all jobs will be similar as there won’t be an abundance of workers in one job. For example, as women can’t be plumbers, doctors, or any “manly” jobs, they either become care takers or school teachers which are looked upon as “feminine” jobs. With all the women being teachers, those jobs become in abundance and people can pay less to get workers for those jobs. It has been difficult to enact and enforce anti-discrimination policies as the discriminants have not receive proper trainings. Furthermore, even if government policies have overcome training restrictions in higher education, they are ineffective in worker-managed and company-managed training programs

Women are in low-wage jobs as their career choices are limited on account of discrimination. Also, the impact of crowding lowers their wages and encourages them to specialize in nonmarket work. Women do not prefer lower wages but are forced to take on lower wages because of discrimination

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