Economics and Management 416
Labor Economics
Fall 2012

Final

1.        How do economists measure statistical discrimination?  Can this information be useful to a HR manager?  Does the use of this information constitute prejudicial discrimination?

2.       Some have labeled the attitudes and actions of minority groups as based on a vicious cycle of expectations of about future discrimination.  Explain why this can result and suggest ways we can break this cycle.  In your essay, please comment on the costs and benefits of acting white and include suggestions on actions our government could do to break the cycle.

3.       Why do white men systematically earn more than black men?  How does premarket discrimination and self-selection affect your answer?

4.       Based on our model of human capital, explain the likely effect of each of the following on the willingness to migrate: a) age, b) distance, c) education, d) marital status, e) the discount rate.

5.       Why are people that possess specific human capital less likely to change jobs than those who possess general human capital?  Does this imply that people who possess large amounts of specific human capital will never migrate?

6.       You have just taken over a failing card dealership.  Past car salespersons have been paid by salary and have the owners little effort.  You have been asked to improve worker productivity, worker morale, and consumer satisfaction.  Suggest methods related to the labor force that could be implemented to achieve these goals.