...Education’s Effect on the “Wage Gap” A hot-topic that continues to be a point of emphasis across not only the United States economy but the world economy as a whole is the ever-increasing gap between the upper-class and lower-class. The recent recession in the United States has intensified the subject seeing the top one percent of incomes in the country rise 20% in 2012 as opposed to some other lower-class incomes falling as much as 18% throughout that same timeframe. Other countries have seen similar issues between the two classes and the path toward extinction for the “middle-class.” In-order to combat this trend, some countries have instituted economic policy changes specifically around education. The following will explain how education and the wage gap are related, what the situation is currently in the United States, and what other countries are doing to combat the wage gap which the U.S. can learn from. In order to understand how education has an effect on the wage gap, it is first important to understand the labor market and how wages are determined. “The Marginal Productivity of Labor” is the additional output produced by the addition of one more labor worker holding all other inputs fixed. “The Law of Diminishing Marginal Productivity of Labor” says that the more workers there are (again, holding all things constant) the lower the total productivity per worker will be. This is comparable to having a factory with only one machine. If more...
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...Sakinah Jackson HUM 325 Professor Slavin June 1, 2014 The Controversy of Gender Pay Gap On behalf of women’s suffrage social activist have scrutinized the gender pay gap to promote social justice and propel lawmakers to remedy the economical injustices of women. Since the Equal Pay Act has been enacted by John F. Kennedy the gender pay gap has slowly narrowed. However, disparity of the gender pay continues to exist and until economical parity between the sexes is resolved controversy will invariably persist. Discrimination in the work force has been displayed statistically through reports from eminent sponsors. Capitol Hill reports that there is a 23 cent division between wages in the broad spectrum of work professions. What are the factors that contribute to this disparity? Critics who denounce gender discrimination in the work place, support the idea that the pay gap factors around the differences in women’s and men’s typical occupation preference. These supporters of this theory reinforce that, more women who acquire a degree are likely to study education and social services which are some of the lower paying professions. Men on the other hand are more likely to study engineering and medicine and this is the explanation for the variance. However, the culpability cannot be pointed at one single handedly thing. Even though discrimination does play a big factor, other aspects of the gender division contribute...
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...Minimum wage in Hong Kong Table of Contents 1. Part 1: Minimum Wage law in Hong Kong 2 2. Introduction 2 3. Minimum Wage – Economic Theory 2 4. Introduction in Hong Kong – May 2010 3 5. Impacts – 15 months later 5 5.1. Employment 5 5.2. Firms profitability 6 5.3. Inflation 7 6. Economic cycle considerations 9 7. Part 2: Housing issues in Hong Kong 9 8. Introduction 9 9. Housing situation in Hong Kong 9 10. Housing Demand in Hong Kong 11 11. Housing supply in Hong Kong 14 12. The Current Government Policies 15 12.1. Policy 1: 15 12.2. Policy 2 16 12.3. Policy 3 16 13. Conclusion 17 14. Bibliography 18 Part 1: Minimum Wage law in Hong Kong Introduction The Hong Kong Government introduced of a Minimum Wage in Hong Kong in May 2011, in response to increased incomes disparity in the territory. It uses economic theory to predict certain impacts such as level of employment, profits of firms, inflation effect and potential positive effects on the economy in general. Minimum Wage – Economic Theory Economic theory tells us that when artificial price floors are introduced in the market, they force prices to remain above the level that balances supply and demand. The same is true with minimum wage; it raises the quantity of labor supplied and reduces the quantity of labor demanded...
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...2009 Ending Gender Pay Disparities Pay disparities for women are a longstanding and troubling issue. While there was some advance in relative women’s pay as indicated by statistics on the ratio of female to male pay, in around 1994 the ratio leveled off suggesting an end to progress (See Figure 6.1, McCall 22). The differences in pay are widespread and pervasive applying not only to female-oriented jobs but to any jobs in which men and women both engage. Only at the bottom of the wage scale do women’s and men’s pay tend to converge because of the effect of the minimum wage. Statistics from 2005 show women earning only 0.77 of what men earn (Weinberg 26). Research has brought out many factors that seem to be influential, such as number of hours worked, experience, and differences in employers (Weinberg 26). However, such explanations do not offer much hope for improving the situation so as to make equal pay a reality. The recently passed Ledbetter Bill has closed some loopholes, but it is unlikely to have a significant effect on ending pay disparities (Erbe). Some might argue that the government can do no more since these disparities result from factors other than gender discrimination. However, as long as women make considerably less than men in similar jobs, women are second-class citizens and not full participants in society. I strongly urge Congress to craft and pass legislation that recognizes the existence of gender pay disparities as an indication of discrimination...
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...some industry sectors than others. The labor market is composed participants who are basically men and women. The rewards of the labor market are wages. The concept of wages is complex and has to be considered critically by employers. One of the greatest concerns in the labor market has been the disparities in the mean income between men and women. Differences between wages received by participants in the labor market is measured by the gender pay gap. The differences arises due to various aspects that differ from one organization to the next (Cohen 2007). In Australia for example, the wages pay gap is computed on the basis of full-time weekly earnings excluding overtime and salary sacrificed pay. Currently, the wage pay gap in Australia stands at 17.5%. The gap has been fluctuating with small margins but the figure has remained unchanged overtime. Differences in income levels of men and women are, for this reason, an important economic and industrial aspect worth consideration. In order to address the disparities in the pay gaps, it is important to examine the possible reasons as to the existence of remuneration differences between men and women. Why does the difference exist? Well, the answer to such a query is often critical and complex. However, the real explanation is the fact that there exist a range of factors responsible for the occurrence of the pay gaps. These factors range from historical, social, behavioral and labor market factors (Clark & Drinkwater 2007)....
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...US Male vs. Female Pay Differences: Has the Wage Gap Narrowed and Why? Table of Contents Abstract…………………………………………………………………………….. 3 Introduction………………………………………………………………………… 4 Literature Review…………………………………………………………………... 5 History of Inequity………………..………………………………………... 6 Pay Equity…………..……………………………………………………... 7 Trends in the Gender Pay Wage Gap…........................................................ 10 Trends in the 1980s………………………………..………………………. 11 Trends in the 1990s………………………………………………………… 12 The Human Capital Theory……..…………………………………………. 14 Sex Segregation Theory……………………………………………………. 15 Conclusion…………………………………………………………………………. 16 Predictions for the future…………………………………………………... 17 References………………………………………………………………………….. 18 Abstract Pay differences between men and women is still a topic that keeps re-surfacing over the years. Since the signing of the Equal Pay Act of 1963, it is now illegal to pay men and women substantially different wages for equal work. The question is could there still be pay disparity between men and women in today’s labor market. This paper evaluates the dilemma faced by employers and reviews the trends in the gender wage gap. The paper will also investigate possible causes of the gender wage gap. In closing, the author will provide possible predictions for the future. US Male vs. Female Pay Differences: Has the Wage Gap Narrowed and Why? In the United States, there is still controversy about male...
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...Running head: INCOME DISTRIBUTION IN THE UNITED STATES Income Distribution in the United States and the Lorenz Curve 1 Market economies are favored and well-known for generating macroeconomic growth and progress in industrialized nations, such as the United States. Numerous academic studies and economic research have been done not only to measure economic growth, but also to analyze any disparities in income distributions among the general American population. This paper will examine trends and patterns of American wages since the 1970s, focusing on shifts in income distributions to see if these shifts can be interpreted as income inequality across different sectors of our society. Furthermore, this paper will study two important and interlinked methods of measuring income inequality, which are the Lorenz Curve and the Gini Coefficient Index. The Executive Branch of our federal government and the U.S. Congress keep a close eye on income distributions throughout the entire nation. These bodies rely heavily on data collected and analyzed by non-partisan agencies such as the U.S. Census Bureau, the Internal Revenue Service (IRS), the U.S. Bureau of Economic Analysis, the Congressional Budget Office (CBO), and academic institutitions that provide data and statistical analysis to assist in economic and budgetary decisions made by elected officials concerning a wide array of policy issues such as taxes, social insurance programs and other issues that impact the overall economy...
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...The Impact of Globalization on Employment Adrian Armijo April 21, 2016 Abstract This paper focuses on the impact of globalization on employment and provides a thorough analysis based on its pros and cons, as well as its effect on wages in OECD nations. With faster interaction or communication of ideas, the stride of industry growth in the emerging world amplified, producing an upsurge in the job markets. As a result, many emerging countries are now undergoing very positive growth rates. In developing nations, predominantly developing nations, globalization led to an increase in employment, either through new businesses being created or businesses offshoring from industrialized nations. While it may be tough to put an accurate number on this, it can be said that globalization generated more jobs in total than it eliminated. In some countries, globalization has played an extremely important role in relation of enhancing employment. Given these points, globalization has enhanced employment and salaries in emerging nations mainly because of inflows of foreign investment or rises in the price of an emerging nation's export products. Introduction First of all, the primary reason and result of globalization is worldwide trade, which has increased significantly. An increasing trade has frequently been followed by greater financial advance, though not in all cases. The correlation between globalization and employment is of rising importance to policy makers in developing countries...
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...A Study of pay Inequity between Genders Abstract As long as an American woman is putting in the same amount of hours with the same qualifications and experience in the same occupation as an American male, and yet taking home a wage that is any lower, she is not being treated fairly as an equal. Contrary to many arguments, it is unquestionable that a wage gap exists, and while there are various ideas as to the most probable cause, there is no reason why this gap should continue to go uncorrected or unchanged. Our government should take concrete steps to close the gender wage gap because it violates women’s rights and equality. The story begins at a local Radio Shack, it is Friday, payday. As employees open their paychecks, they are awaiting their annual raise. As one employee, Neha opens up her paycheck she finds she has not yet received a raise; she has waited all year for this raise. She is very sad to find she did not receive one. She begins to think maybe she did something wrong. She starts to think back through the year, and cannot seem to come up with any solutions as to why she did not receive one. She worked especially hard that year in hopes to receive a good raise and felt she deserved to be recognized for it. In the break room she overheard her co-worker John bragging to their colleagues about his second raise. Now John is making a dollar twenty five more per hour than her even though they both have been working at Radio Shack for...
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...The Glass Ceiling Effect: Women’s Career Advancement in Puerto Rico Ángela Ramos Pérez May 7, 2008 2 Index Chapter One .....................................................................................................................................3 Introduction..................................................................................................................................3 Purpose for the Study...............................................................................................................3 Limitation ................................................................................................................................6 Chapter Two ....................................................................................................................................7 Literature Review ........................................................................................................................7 Introduction..............................................................................................................................7 Glass Ceiling............................................................................................................................8 Career Advancement .............................................................................................................12 Gender Based Gap ...........................................................................................................
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...it affects markets and production. 2. Identify the two forces causing globalization to increase. 3. Summarize the evidence for each main argument in the globalization debate. 4. Identify the types of companies that participate in international business. 5. Describe the global business environment and identify its four main elements. CHAPTER OUTLINE: Introduction International Business Involves Us All Technology Makes It Happen The Global Relay Race Globalization Globalization of Markets Reduces Marketing Costs Creates New Market Opportunities Levels Uneven Income Streams Yet Local Needs Are Important Globalization of Production Access Lower-Cost Workers Access Technical Expertise Access Production Inputs Forces Driving Globalization Falling Barriers to Trade and Investment World Trade Organization Regional Trade Agreements Trade Agreements and Trade Growth Technological Innovation E-mail and Videoconferencing Internet and World Wide Web Company Intranets and Extranets Advancements in Transportation Technologies Measuring Globalization Untangling the Globalization Debate Today’s Globalization in Context The Current Globalization Backlash Leaving the Anarchists Behind Before We Go On Globalization’s Impact on Jobs and Wages Globalization Costs Jobs and Lowers Wages Eliminates Jobs in Developed Nations Forces Wages Lower in Developed Countries Exploits Workers in Developing Nations Globalization Creates Jobs and Boosts Wages Increases Wealth...
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...CAN THE MIDDLE CLASS BE SAVED? ANDREW NELSON MGMT 6400 PROFESSOR R. BING JUNE 14, 2014 CRITICAL ANALYSIS-ACADEMIC LITERATURE The severe economic downturn known as the Great Recession of 2008, has spurred the hastening of the challenges of the middle class in America. It has also highlighted the deepening chasm between the mass populace and the income elite. The resultant course has carved out significant consequences and changes that have widened the gap. The critical question is: what can we do to bridge that gap? According to research by a Citigroup a team of analysts in 2005, it was reported that the average U.S. consumer had essentially retreated relative to the patterns of growth for the U.S. economy. The 2005 report clearly outlined that America was composed of two disparate groups. Simply put, the two groups are the wealthy and everybody else. From an investment standpoint it was further noted that the rich were really the only group that mattered, and that everybody else had very little impact in terms of involvement with investment capital. From an analytical standpoint, the spending habits and savings rates of the second group had little to no impact because all of the influential factors for the American economy were coming from the top. In other words, the wealthiest 1% of households earn as much each year as the bottom 60% put together. Furthermore in terms of wealth, the top 1% possessed as much wealth as the bottom 90%...
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...Fix the Gender Pay Gap." Harvard Business Review. Harvard Business Review, 02 Dec. 2014. Web. 08 Oct. 2015. 2. What We're Watching in the Gender Wage Gap. (2010, September 1). Retrieved October 8, 2015. 3. Neale, M. (2015, June 29). More Reasons Women Need to Negotiate Their Salaries. Retrieved October 8, 2015. 4. Maatz, L. (2014, April 5). The Awful Truth Behind the Gender Gap. Retrieved October 9, 2015. 5. Smith, K. (2014, April 10). The Gender Pay Gap Is Just the Beginning of America's Pay Inequity Problem. Retrieved October 9, 2015. 6. The Simple Truth about the Gender Pay Gap (Fall 2015) (AAUW: Empowering Women Since 1881) 7. Mind the Gap: How One Employer Tackled Pay Equity. (n.d.). Retrieved October 9, 2015. 1. It’s no secret that women are paid less than men, even when occupations are held constant, and even when those occupations are high-pay and high-skill. According to the Bureau of Labor Statistics, the median weekly earning for American female physicians working full-time is $1,497, while for men it is $2,087. A 2013 BLS report shows pay inequity by occupation for women of all races: women in architecture and engineering occupations earn 83.7% to the dollar in comparison to men and in computer and mathematical occupations 81% to the dollar in comparison to men. When Forbes analyzed 2012 median weekly earnings of full-time wage and salary workers data from BLS for the top-paying professions, they found that women earned on average approximately...
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...Many service jobs are in minimum wage, while hourly wages from manufacturing jobs have historically exceeded the minimum wage by a substantial margin. As a result the standard living will necessarily decline. Furthermore, manufacturing allows the firm to capture payoff for the development of new technology. If this payoff is lost, so is the incentive to invest in research. The decline of manufacturing domestically has led to a shift in jobs from the manufacturing sector to the service sector. Because there are major disparities in labor costs in different parts of the world, there are strong incentives for American firms to locate volume manufacturing facilities overseas to reduce labor costs. 2.What disadvantages do you see if the CEO is primarily concerned with the short-term ROI? In the short term, decreasing the denominator by cutting back on the investment in new technologies or new facilities. Performance is measured over short time horizons. There is little motivation for a CEO to invest in a project that is not likely to bear fruit. 3.Can you think of companies that have gone out of business because they focused only on cost and were not able to achieve a minimum quality standard? -“Enron went from the No. 7 company on the Fortune 500 to a penny stock in a stunning three weeks because it apparently lied on its financial statements,” said Representative John D. Dingell, one-time member of the House Energy Committee. While other parts of the world have experienced...
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...differences in male and female wages using data from Statistics Canada’s annual Survey of Consumer Finance (SCF) and Survey of Labour Income Dynamics (SLID). In addition to information on annual income, this study also looks at hourly wage data, which is a more precise measure as the earnings data series takes into account the price of labour as well as quantity (i.e. individuals’ work/leisure preferences). This study looks at the variables of race, highest achieved level of education as well as age to examine the existence of a wage gap. Like other studies, we have found that males have a higher wage in each of these areas, with females earning an average of 80 – 87% of the males’ average. Furthermore, we have examined the existence and size of a wage gap in three industries; law, nursing and the education industry. Finally, we looked at the Canadian gender-based wage gap statistics compared to International gender-based wage gap statistics. We deduced that there is, indeed, a wage gap in each of the mentioned industries, and can be partially attributed to human capital theory and occupational segmentation theory, however, a substantial portion of the gap remains unexplained. 2. General Existence of Gender-Based Wage Differentials in Canada The existence of gender based wage differentials in North America have been well documented for decades. Although female-male wage ratios have closed significantly since the mid 1980s, progress in wage equalization has seen some stabilization...
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