Wage differentials - Discrimination - Chapter 8

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  • Created by: sammilaw
  • Created on: 23-02-16 16:50
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  • Wage Differentials
    • Chapter 8
    • Negative Discrimination
      • Leads to an individuals' perceived MRP as being lower that it really is
      • Consequences:
        • Lower pay
        • Taking jobs that a lower than their qualified level
        • Difficulty in finding work
        • Limited supply for employer = higher production costs = lower international competitiveness = higher prices
        • May not be considered for promotion or senior roles
        • Opportunity cost of time and money spent on reducing discrimination
      • Demand curve is more to the LEFT than it should be = lower wage
    • Positive Discrimination
      • Employers perceive a workers' MRP to be higher than it really is
      • Demand curve is more to the RIGHT than it should be = higher wage


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