Labor Economy and Immigration Essay

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What are some reasons for a gender wage gap other than gender discrimination?

The provided materials confirm that there are wage gaps between men and women across races; in total, the gap is assessed to be almost 20 percent. Important differences in this context are associated with not only the wage gap in general but also occupational distribution: the professions in which women are a majority (e.g., early childhood education, community service, or studio art) are among college majors with the lowest earnings, while predominantly male professions (e.g., petroleum engineering or pharmaceutical sciences) are among majors with the highest earnings.

Also, women are more concerned about inequality, and more claims about the need to improve equality in the workplace come from women than from men; younger people are more likely to make such claims than Gen X or Boomers. Apart from direct gender discrimination, there is also implicit discrimination: due to having insufficient access to education or being affected by living in vulnerable communities, women and representatives of various minorities may not be able to find jobs that would pay as much as those of people who came from favorable backgrounds and were given opportunities to receive a good education.

What are some factors that influence the rate of immigration or worker mobility? How does immigration influence U.S. labor markets based on information provided on documents?

Major factors that influence the rate of worker mobility and immigration are employment situation, education situation, social security, and legislation. In case there is poor access to education in a given area or population, people in it are likely to consider relocating to places where there is better access; similarly, high unemployment rates in a given area or industry is a factor in worker mobility toward places where it is easier to find an appropriate job.

In their relocation, workers may also pursue better labor laws, social security, or working conditions. Immigration influences the U.S. labor market primarily in terms of reducing the wages of workers in a particular industry due to the increasing supply of labor; however, there is still a debate on whether immigration significantly affects the employment levels of native-born workers. Also, immigrants make contributions to the labor force that result in the reduction of prices. Specific types of immigration, such as high-skilled, are capable of diversifying and strengthening the labor force, thus facilitating innovation and economic growth.

Discuss factors that will influence whether individuals seek more education or training. How might education be used to signal productivity?

A correlation has been established between educational attainment and the level of earning: individuals with higher levels of training earn more on average and are less likely to be unemployed. This recognition is an important factor that contributes to the perceived necessity to seek more education or training among workers. Also, the field is an important predictor, as it has been confirmed that, in some fields, obtaining a degree, either bachelor’s or advanced, can increase a person’s earnings to a more significant extent than in other fields.

There is an ongoing debate on whether education increases productivity or simply signals the ability. The signaling model suggests that the educational level (and costs of education associated with it) is linked to the level of productivity and particular wage. Employers generally share the belief that their potential employees’ educational attainment is a fair predictor of productivity.

What are the different types of discrimination and how might each be measured? What pieces of legislation have been most important in addressing discrimination and discriminatory practices?

Discrimination types include those related to gender, race, and age. A particular way to measure discrimination in the context of labor is to calculate mean earnings indicators for groups of people of different gender and age and to come from different ethnic backgrounds; in case there are wage gaps (and there are), it indicates discrimination. However, there are barriers to eradicating various forms of discrimination, and such barriers are primarily associated with the absence of declared, explicit discrimination: an example of it would be a certain company’s official policy to employ exclusively White men in their thirties.

Instead, such official policies are not declared, and legislation prohibits discrimination. From this perspective, it is important that legislation is enforced; not only should labor laws provide equal rights to people of different gender, race, and age, but also specific policies providing penalties for acts of discrimination should be in place. In some cases, positive discrimination legislation (e.g., gender quotas in corporate governance or the formation of a legislature) can be applied to ensure the fulfillment of rights of those groups that have been discriminated against in the past.

Provide a model where an employer might gain utility from practicing discrimination and explain why this choice is not economically rational.

An employer may pursue a model of minimizing costs and risks of loss by incorporating de facto discrimination into the human resources management practices. Following this model, the employer prioritizes applicants who are male (less likely to go on parental leave), young (less likely to demonstrate poor attendance due to health problems), and of a certain race (to avoid the need to manage diversity, as managing diversity may be associated with additional costs).

However, this model is not economically rational. Due to the homogeneity of the workforce and low diversity, the employer will face a limited pool of possible solutions and inflexible decision-making. Also, due to apparent discrimination, the employer may deteriorate its image in its target audience, thus losing current and potential customers.

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IvyPanda. (2021, March 23). Labor Economy and Immigration. https://ivypanda.com/essays/labor-economy-and-immigration/

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IvyPanda. 2021. "Labor Economy and Immigration." March 23, 2021. https://ivypanda.com/essays/labor-economy-and-immigration/.

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