Directions: Please answer the questions below. Your response to each question must be at least one paragraph in length. Explain your thoughts with theory and examples where applicable.
A recent study of the determinants of wages for clerical staff at a state university found that years of schooling, years of experience, age, and job characteristics only explained about one-half of the difference in wages. Describe other factors that may be important in explaining wage differences for clerical staff.
After graduating from college, you receive job offers from five different accounting firms. All job offers have a different compensation package. Is it irrational for you to accept an offer that doesn’t provide the highest level of monetary compensation? Use the concept of compensating differentials to explain your answer.
List the productivity factors that may explain the differences in pay between men and women in similar occupations. Do any of these factors arise as a result of cultural or social traditions? If so, describe how changes in social relationships will affect the pay gap over time.
Explain the role that consumers play in perpetuating discrimination in labor markets.
Outline the possible work disincentives created by anti-poverty programs. Is there a way to solve this problem without causing other forms of inefficiency to arise? Explain your answer.
Suppose that the president proposes a new law aimed at reducing healthcare costs: All Americans are required to eat one apple daily. How would this apple-a-day law affect the demand and equilibrium price of apples? How would the law affect the marginal product and the value of the marginal product of apple pickers? How would the law affect the demand and equilibrium wage for apple pickers?
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