【正文】 cycle. ? A young worker has a low ine at the beginning of his or her career. ? Ine rises as the worker gains maturity and experience. ? Ine peaks at about age 50. ? Ine falls sharply at retirement, around age 65. Copyright 169。2020 SouthWestern Copyright 169。 2020 SouthWestern Figure 1 The Poverty Rate Copyright169。 2020 SouthWestern CASE STUDY: The Women’s Movement and the Ine Distribution ? The percentage of women who hold jobs has risen from about 32 percent in the 1950s to about 54 percent in the 1990s. Copyright 169。2020 SouthWestern Copyright 169。 2020 SouthWestern Table 1 The Distribution of Ine in the United States: 2020 Copyright169。 2020 SouthWestern Summary ? Competitive markets tend to limit the impact of discrimination on wages. ? Discrimination can persist in petitive markets if customers are ? willing to pay more to discriminatory firms, ? or if the government passes laws requiring firms to discriminate. Copyright169。 2020 SouthWestern Summary ? Workers earn different wages for many reasons. ? To some extent, wage differentials pensate workers for job attributes. ? Workers with more human capital get paid more than workers with less human capital. Copyright 169。 2020 SouthWestern Discrimination by Employers ? Competitive markets tend to limit the impact of discrimination on wages. ? Firms that do not discriminate will be more profitable than those firms that do discriminate. Copyright 169。2020 SouthWestern Copyright 169。 2020 SouthWestern Measuring LaborMarket Discrimination ? Discrimination is often measured by looking at the average wages of different groups. Copyright 169。 2020 SouthWestern AboveEquilibrium Wages: MinimumWage Laws, Unions, and Efficiency Wages ? Unions ? A union is a worker association that bargains with employers over wages and working conditions. ? Strike ? A strike refers to the anized withdrawal of labor from a firm by a union. Copyright 169。 2020 SouthWestern Ability, Effort, and Chance ? Natural ability is important for workers in all occupations. ? Many personal characteristics determine how productive workers are and, therefore, play a role in determining the wages they earn. Copyright 169。 2020 SouthWestern Human Capital ? Human capital is the accumulation of investments in people, such as education and onthejob training. ? The most important type of human capital is education. Copyright 169。 2020 SouthWestern Earnings and Discrimination ? Differences in Earnings in the United States Today ? The typical physician earns about $200,000 a year. ? The typical police officer earns about $50,000 a year. ? The typical farm worker earns about $20,000 a year. Copyright 169。2020 SouthWestern 19 Earnings and Discrimination Copyright 169。 2020 SouthWestern Compensating Differentials ? Compensating differential refers to a difference in wages that arises from nonmoary characteristics of different jobs. ? Coal miners are paid more than others with similar levels of education. ? Night shift workers are paid more than day shift workers. ? Professors are paid less than lawyers and doctors. Copyright 169。 2020 SouthWestern Ability, Effort, and Chance ? Why has the gap in earnings between skilled and unskilled workers risen in recent years? ? International trade has altered the relative demand for skilled and unskilled labor. ? Changes in technology have altered the relative demand for skilled and unskilled labor. Copyright 169。 2020 SouthWestern AboveEquilibrium Wages: MinimumWage Laws, Unions, and Efficiency Wages ? Why are some workers’ wages set above the level that brings supply and demand into equilibrium? ? Minimumwage laws ? Market power of labor unions ? Efficiency wages Copyright 169。 2020 SouthWestern THE ECONOMICS OF DISCRIMINATION ? Although discrimination is an emotionally charged topic, economists try to study the topic objectively in order to separate myth from reality. Copyright 169。 2020 SouthWestern Measuring LaborMarket Discrimination ? Simply observing differences in wages among broa