| What is Wage Discrimination? | -This occurs when Employers have Monopsony Power and pays Different Wage Rates Different Workers Willingness to the Supply Curve
-This means that the Total Wage Cost for the Firm falls from Square to a Triangle |
| Which Categories would be more Likely to Work for Lower Wages? | -The Youth, purely for trying to get Experience and not Money
-Part Time Workers trying to get some Money at least, if they are not the Main Wage Earner in the Household
-Immigrants, if they still Earn More than their Country of Origin |
| What Advantages and Disadvantages would Wage Discrimination bring to the Workers | A: Employer's Wage Costs will be Lowered meaning Demand for Labour can be Increased dishing out More Jobs
D: Leads to Exploitation of Vulnerable Workers who are Forced to Accept Lower Wages
D: Force Wages down for All Workers in a Market |
| What Advantages and Disadvantages would Wage Discrimination bring to the Employers | A: Reduces the Cost of Wages, leading to Higher Profits
D: Requires much more Admin to Pay Workers in the Same Job Different Wages
D: Leads to Industrial Unrest if Workers know about the Wage Differences --> Trade Union Intervention? |
| What Advantages and Disadvantages would Wage Discrimination bring to the Economy? | A: Could Increase Employment Levels via Increased Demand for Labour
D: Leads to Increases in Inequality and so more Government Benefits to 'Top Up' low wages |
| What is Labour Market Discrimination? | -This is when a Specific Group of Workers are Treated Differently from other Workers in the Same Job
-Based on their: Race, Gender, Sexuality, Religion, Disability, Pronouns...
-This is Banned in Britain. The Equality Act of 2010 |
| What is Racial Discrimination? (In the Labour Market) | -Employers only want to Work with and Employ with people from a Similar Ethnic Background.
-Prepared to Pay a Price for this - Loss of Productivity |
| What is the Gender pay gap? | -Average Pay Rates are Lower for Women than for Men
-Thought to be from how Male Employees are Paid More than Female Employees from doing the Same Job |
| What happens to Workers when they Suffer from Discrimination? | -They Accept Lower Wages than what they are Expected for (Overqualified perhaps?)
-Humans who are put through this can be Expelled from Promotions, making them have Limiting Carer Prospects.
-The Social Cost too? Mental Health? |
| Why do Employers Discriminate via Prejudices? | -They Believe the MRP of certain Groups of Workers are Lower than it Really is. Or that their Preferred Group is Higher than it is
-The MRP of the Discriminated Group leads to less being Employed and Wages going down.
-The Cost of doing so means they lose out of the Productivity, having fewer Workers to choose from, and Increased Prices. |
| Why can Discrimination affect the Government and the Economy? | -The Government needs more Welfare Payments to support the Discriminated Workers
-Discriminated Workers receiving Unfairly Low Wages reduces the Government Tax Revenues
-If the Discriminated Workers are in a Job that is not Suited for them, then Productivity can fall. This can hit the Country international as they become less Competitive |
