Welcome to Econ 325 Economics of Gender

Week 13Beginning April 23

Return ICA 5: Answer 2 of the following 3 questions

1. What is the “bona fide occupational qualification (BFOQ)” exception? Give an example.

2. Give an example of unintentional discrimination that has a disparate impact.

3. Relate the story in the WSJ to the statistical discrimination or the feed back effect.

The complete paper is due

• Friday

Study

• Chapter 8 and• CNN article• For Wednesday

Going to college pays off more than before

• Table 8.2, page 265• Use the 190.4 (4th column, last row) in a

sentence• In 2003, a female college graduate made

near 2 times of typical high school grad

Going to college pays off more than before

• Table 8-3, page 266• Use 39 (3rd column, last row) in a

sentence• Between 1974 to 2003, the

average earning s of female college grads went up by 39 percent

Are you unemployed (U)?

• If you are over 16, • don’t have a job, and • Are willing an able to work, and• have actively looked for a job within the past 4

weeks, then• you are unemployed.

Are you employed (E)?

• If you are 16 or older and• Have any job that pays or• Have a job at a family business

that requires you to work 15 hours or more a week but it does not pay

• Then you are employed

Unemployment rate (UR)

• UR = U/(E + U) * 100

Types of Unemployment

1. Frictional2. Structural3. Cyclical4. Seasonal• Which one is a macroeconomic

problem?

What is full employment?

• Full employment exists when cyclical unemployment = 0

• Full employment exists when the current unemployment rate is equal to its natural rate

Who has a higher rate of unemployment?

• Table 8.4, page 270• Male or female?• Black or white?• Teenagers or others?

• Figure 8.2, page 271• In recent year, the female

unemployment rate has been _________ than the male unemployment rate.

• Why?

Wednesday, April 25

• Paper is due Friday• You will present your paper in class

next week

ICA 6: CNN Article

1) What has the study found regarding the size of the wage gap between male and female workers?

2) List at least four factors that have contributed toward the wage gap, according to this study.

Who is underemployed?

1. Works part time but would like to work full time (involuntary part-time)

• Part time for economic reasons• Involuntary part time workers

2. Or, works at a job for which he/she is overqualified

Other categories1. Marginally attached workers

• Don’t have jobs• Want jobs• But have not looked for a job in the last

4 weeks • But have looked for a job in the last

year

2. Discouraged Workers • A subset of marginally attached

workers• Don’t think they can find jobs

Nonstandard Work force

• Non-full time year-long workers

1. Part-time workers (less than 35 hours per week)

2. Temporary workers3. On-call workers4. Contract workers5. Independent contractors

Observations

• Table 8.5, page 275• Use 67.5 (column 2, row 6) in a

sentence• In 2001, the majority (67.5%) of

part time workers were female• The majority of nonstandard

workers were female too• Table 8.6, page 279

Observation: The proportion of labor force with nonstandard jobs has increased over time. Why?

• Increased demand, why?• Increased supply, why?

Consequences of Nonstandard Jobs

• Job security• Insurance• Other benefits• Flexibility• Promotion• Income

Labor Unions

• Overall membership has declined• Membership of women has

increased

Friday, April 27

• Collect the paper• ICA: Marriage Market

• Is graded based on how much you are able to increase your individual welfare

• There are 3 rounds• I will announce the end and the

beginning of each round.

My predictions

1. Chris and Heidi end up together and if they share total benefits equally, it will be hard to break up their marriage.

2. The same story holds for Bryan A. and Emily

3. And the same thing is true for Jeremy and Tian

Let’s look at the market

Jeremy Bryan A. Brian B. Chris Josh Single

Tian 15 16 14 17 12 5

Heidi 9 15 13 18 16 3

Emily 8 17 12 10 15 4

Single 3 5 4 7 6