Labour economics, or labor economics, seeks to understand the functioning and dynamics of the markets for wage labour. Labour is a commodity that is supplied by labourers, usually in exchange for a wage paid by demanding firms. Because these labourers exist as parts of a social, institutional, or political system, labour economics must also account for social, cultural and political variables.
Affirmative action refers to a set of policies and practices within a government or organization seeking to benefit marginalized groups. Historically and internationally, support for affirmative action has been justified by the idea that it may help with bridging inequalities in employment and pay, increasing access to education, and promoting diversity, social equity and redressing alleged wrongs, harms, or hindrances, also called substantive equality.
Racial discrimination is any discrimination against any individual on the basis of their race, ancestry, ethnicity, and/or skin color and hair texture. Individuals can discriminate by refusing to do business with, socialize with, or share resources with people of a certain group. Governments can discriminate explicitly in law, for example through policies of racial segregation, disparate enforcement of laws, or disproportionate allocation of resources. Some jurisdictions have anti-discrimination laws which prohibit the government or individuals from being discriminated based on race in various circumstances. Some institutions and laws use affirmative action to attempt to overcome or compensate for the effects of racial discrimination. In some cases, this is simply enhanced recruitment of members of underrepresented groups; in other cases, there are firm racial quotas. Opponents of strong remedies like quotas characterize them as reverse discrimination, where members of a dominant or majority group are discriminated against.
Managerial economics is a branch of economics involving the application of economic methods in the organizational decision-making process. Economics is the study of the production, distribution, and consumption of goods and services. Managerial economics involves the use of economic theories and principles to make decisions regarding the allocation of scarce resources. It guides managers in making decisions relating to the company's customers, competitors, suppliers, and internal operations.
The term efficiency wages was introduced by Alfred Marshall to denote the wage per efficiency unit of labor. Marshallian efficiency wages are those calculated with efficiency or ability exerted being the unit of measure rather than time. That is, the more efficient worker will be paid more than a less efficient worker for the same amount of hours worked.
Proposition 209 is a California ballot proposition which, upon approval in November 1996, amended the state constitution to prohibit state governmental institutions from considering race, sex, or ethnicity, specifically in the areas of public employment, public contracting, and public education. Modeled on the Civil Rights Act of 1964, the California Civil Rights Initiative was authored by two California academics, Glynn Custred and Tom Wood. It was the first electoral test of affirmative action policies in North America. It passed with 55% in favor to 45% opposed, thereby banning affirmative action in the state's public sector.
Personnel economics has been defined as "the application of economic and mathematical approaches and econometric and statistical methods to traditional questions in human resources management". It is an area of applied micro labor economics, but there are a few key distinctions. One distinction, not always clearcut, is that studies in personnel economics deal with the personnel management within firms, and thus internal labor markets, while those in labor economics deal with labor markets as such, whether external or internal. In addition, personnel economics deals with issues related to both managerial-supervisory and non-supervisory workers.
Griggs v. Duke Power Co., 401 U.S. 424 (1971), was a court case argued before the Supreme Court of the United States on December 14, 1970. It concerned employment discrimination and the disparate impact theory, and was decided on March 8, 1971. It is generally considered the first case of its type.
In contract theory, signalling is the idea that one party credibly conveys some information about itself to another party.
Employment discrimination is a form of illegal discrimination in the workplace based on legally protected characteristics. In the U.S., federal anti-discrimination law prohibits discrimination by employers against employees based on age, race, gender, sex, religion, national origin, and physical or mental disability. State and local laws often protect additional characteristics such as marital status, veteran status and caregiver/familial status. Earnings differentials or occupational differentiation—where differences in pay come from differences in qualifications or responsibilities—should not be confused with employment discrimination. Discrimination can be intended and involve disparate treatment of a group or be unintended, yet create disparate impact for a group.
Equal employment opportunity is equal opportunity to attain or maintain employment in a company, organization, or other institution. Examples of legislation to foster it or to protect it from eroding include the U.S. Equal Employment Opportunity Commission, which was established by Title VII of the Civil Rights Act of 1964 to assist in the protection of United States employees from discrimination. The law was the first federal law designed to protect most US employees from employment discrimination based on that employee's race, color, religion, sex, or national origin.
In the United States, affirmative action consists of government-mandated, government-approved, and voluntary private programs granting special consideration to groups considered or classified as historically excluded, specifically racial minorities and women. These programs tend to focus on access to education and employment in order to redress the disadvantages associated with past and present discrimination. Another goal of affirmative action policies is to ensure that public institutions, such as universities, hospitals, and police forces, are more representative of the populations they serve.
Economic discrimination is discrimination based on economic factors. These factors can include job availability, wages, the prices and/or availability of goods and services, and the amount of capital investment funding available to minorities for business. This can include discrimination against workers, consumers, and minority-owned businesses.
Split labor market theory was proposed by sociologist Edna Bonacich in the early 1970s as an attempt to explain racial/ethnic tensions and labor market segmentation by race/ethnicity in terms of social structure and political power rather than individual-level prejudice. Bonacich argues that ethnic antagonism emerges from a split labor market, where two or more racially/ethnically distinct groups of workers vie for the same jobs, and where the total cost to the employer of hiring workers from one group is significantly lower than the cost of hiring from the other group. Employers prefer to hire cheaper workers and will do so absent active opposition from higher-priced workers, creating an antagonism between higher- and lower-priced groups. Differences in the price of labor are sociological and political in nature, not a matter of personal preference, so that, e.g., native, unionized workers, who enjoy full political rights will demand higher wages and be more likely to resist employer prerogatives than undocumented immigrant, non-union workers from poorer countries. According to Bonacich, likely outcomes of a split labor market include not only antagonism but, depending on the political power of higher-priced workers, a caste-like system where lower-priced workers are restricted to specific occupations, or total exclusion of the lower-priced group from the labor market.
Statistical discrimination is a theorized behavior in which group inequality arises when economic agents have imperfect information about individuals they interact with. According to this theory, inequality may exist and persist between demographic groups even when economic agents are rational. This is distinguished from taste-based discrimination which emphasizes the role of prejudice to explain disparities in labour market outcomes between demographic groups.
In the United States, despite the efforts of equality proponents, income inequality persists among races and ethnicities. Asian Americans have the highest median income, followed by White Americans, Hispanic Americans, African Americans, and Native Americans. A variety of explanations for these differences have been proposed—such as differing access to education, two parent home family structure, high school dropout rates and experience of discrimination and deep-seated and systemic anti-Black racism—and the topic is highly controversial.
The maternal wall is a term referring to stereotypes and various forms of discrimination encountered by working mothers and mothers seeking employment. Women hit the maternal wall when they encounter workplace discrimination because of past, present, or future pregnancies or because they have taken one or more maternity leaves. Women may also be discriminated against when they opt for part-time or flexible work schedules. Maternal wall discrimination is not limited to childcare responsibilities. Both men and women with caregiving responsibilities, such as taking care of a sick parents or spouse, may also result in maternal wall discrimination. As such, maternal wall discrimination is also described as family responsibilities discrimination. Research suggests that the maternal wall is cemented by employer stereotypes and gender expectations.
Ban the Box is an American campaign by advocates for ex-offenders aimed at removing the check box that asks if applicants have a criminal record from hiring applications. Its purpose is to enable ex-offenders to display their qualifications in the hiring process before being asked about their criminal records. The premise of the campaign is that anything that makes it harder for ex-offenders to find a job makes it likelier that they will reoffend, which is bad for society.
Networks in labor economics refers to the effect social networks have on jobseekers obtaining employment. Research suggests that around half of the employed workforce found their jobs through social contacts. It is believed that social networks not only contribute to the efficiency of job searching but can also explain, at least partly, wage differences and other inequalities in the workforce. Various models are used to quantify this effect, all having their own strengths and weaknesses. Models generally have to simplify the complex nature of social networks.
Family Responsibilities Discrimination (FRD), also known as caregiver discrimination, is a form of employment discrimination toward workers who have caregiving responsibilities. Some examples of caregiver discrimination include changing an employee's schedule to conflict with their caregiving responsibilities, refusing to promote an employee, or refusing to hire an applicant.
