Economic Approach to Discrimination
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Questions and Answers

What is the central focus of the economic approach to discrimination?

  • The legal and ethical frameworks surrounding discrimination.
  • The consequences of discriminatory actions. (correct)
  • The historical and cultural context of discrimination.
  • The underlying causes of discrimination.

According to Becker's theory, what is the primary driver of discrimination?

  • A lack of understanding of different groups.
  • Social norms and cultural expectations.
  • A preference or 'taste' for associating with certain groups. (correct)
  • Economic incentives and self-interest.

Which of the following is NOT mentioned as a potential factor contributing to discrimination in the text?

  • Religious beliefs
  • Nationality
  • Race
  • Gender identity (correct)

How does a widespread 'taste' for discrimination affect wages?

<p>It causes wages for preferred groups to rise and wages for non-preferred groups to fall. (B)</p> Signup and view all the answers

How does the economic approach to discrimination differ from that of other disciplines?

<p>Economists emphasize the consequences of discriminatory actions. (D)</p> Signup and view all the answers

The text distinguishes between prejudice and discrimination. Which of the following statements best describes this distinction?

<p>Prejudice is a feeling, while discrimination is an action. (D)</p> Signup and view all the answers

What is a discrimination coefficient (dε)?

<p>The additional amount people are willing to pay to engage with the preferred group. (D)</p> Signup and view all the answers

Why might an employer be willing to pay a higher wage to a North American hockey player than a European player, even if their skills are identical?

<p>The employer may have a preference for associating with North American players. (D)</p> Signup and view all the answers

What effect does the taste for discrimination have on the demand for North American and European hockey players?

<p>It increases demand for North American players and decreases demand for European players. (D)</p> Signup and view all the answers

What is a possible consequence of a strong taste for discrimination in the NHL?

<p>A decrease in the number of European players hired by NHL teams. (A)</p> Signup and view all the answers

What is the major reason for the lack of European players in the NHL before 1965?

<p>There was discrimination against European players by NHL teams. (B)</p> Signup and view all the answers

What evidence suggests that discrimination against European players might have existed in the NHL?

<p>The low number of European players in the NHL. (D)</p> Signup and view all the answers

Assume that there are two hockey players with identical skills and experience, one North American and one European. Who would be more likely to be hired by an NHL team with a strong taste for discrimination, according to the text?

<p>The North American player, because of the employer's preference for North Americans. (D)</p> Signup and view all the answers

The text states that the National and American Leagues in baseball hired no black players between 1888 and 1947. What does this example demonstrate?

<p>The difficulty of changing social norms related to discrimination. (A)</p> Signup and view all the answers

What is the owner's discrimination coefficient in the provided scenario?

<p>0.2 (D)</p> Signup and view all the answers

What is the owner's 'psychological cost' for hiring Jiri?

<p>$100,000 (B)</p> Signup and view all the answers

What is the owner's 'actual' financial cost for hiring Jiri?

<p>$500,000 (B)</p> Signup and view all the answers

How would the owner be worse off financially?

<p>By increasing salaries for both NA and European players in an attempt to attract them (C)</p> Signup and view all the answers

What is the minimum salary on which a European player would be willing to work, given the owner's discrimination coefficient of 0.2?

<p>A salary that is 20% lower than a North American player's salary. (D)</p> Signup and view all the answers

How does the owner's taste for discrimination impact the overall market for players?

<p>It increases the demand for NA players and reduces the demand for European players (D)</p> Signup and view all the answers

In this scenario, what is the relationship between the owner's utility maximization and their financial situation?

<p>The owner's utility maximization comes at the expense of their financial profit (D)</p> Signup and view all the answers

How do discriminatory owners benefit financially from the market?

<p>They do not benefit financially; they are maximising their utility at the expense of financial profit. (D)</p> Signup and view all the answers

What was the reason given for the disparity in prize money between the men's and women's Wimbledon tournaments?

<p>Both A and B are accurate. (B)</p> Signup and view all the answers

What was the primary factor that led to the increase in revenue generated by the 2023 Women's World Cup compared to the 2022 Men's World Cup?

<p>Increased sponsorship revenue. (A)</p> Signup and view all the answers

Which of the following statements accurately describes the outcome of the USWNT's lawsuit against the USSF regarding equal pay?

<p>The settlement was a major step toward gender equity but did not fully address the pay gap for World Cup players. (C)</p> Signup and view all the answers

What was the primary argument Billie Jean King used to justify her threatened boycott of the 1973 US Open?

<p>The significantly lower prize money offered to women compared to men. (B)</p> Signup and view all the answers

What is the key challenge mentioned in the text regarding proving gender discrimination in sports?

<p>The difficulty in controlling for other factors besides gender when comparing performances. (B)</p> Signup and view all the answers

What significant change occurred in professional tennis after the successful protest led by Billie Jean King?

<p>The equalization of prize money between men and women in the US Open. (E)</p> Signup and view all the answers

What does the new labor deal between US Soccer and both the men's and women's teams guarantee?

<p>Equal pay for both men's and women's teams, including FIFA prize money. (B)</p> Signup and view all the answers

What argument is used by some to justify the higher prize money for men in tennis tournaments?

<p>Men's tennis matches are longer, requiring more effort from players. (C)</p> Signup and view all the answers

According to the provided content, what sport has faced substantial discrimination against Black players in Europe?

<p>Football (B)</p> Signup and view all the answers

Which of the following is NOT mentioned in the provided text as a factor contributing to the decline of consumer discrimination in American sports since the 1970s?

<p>The influence of social media (D)</p> Signup and view all the answers

What is the main focus of the provided text?

<p>The evidence and challenges of racial and gender discrimination in professional sports (A)</p> Signup and view all the answers

Which of the following sports leagues in the US is mentioned as having the highest score for gender inclusion in senior administration on the Racial and Gender Report Cards?

<p>WNBA (C)</p> Signup and view all the answers

What is the main point made by the text about Stephanie Frappart?

<p>She is a pioneer who has broken gender barriers in refereeing major men's football matches. (C)</p> Signup and view all the answers

What is a significant challenge in promoting diversity in professional sports?

<p>The absence of women in positions of leadership (A)</p> Signup and view all the answers

What does the text suggest about the overall evidence of discrimination in professional sports?

<p>The evidence is mixed with some signs of progress but ongoing challenges. (D)</p> Signup and view all the answers

Which of the following is a key example of consumer discrimination mentioned in the text?

<p>The use of offensive language towards Black players. (B)</p> Signup and view all the answers

According to the provided text, what was the main impact of racial discrimination in Major League Baseball during the period when black players were excluded?

<p>It allowed more white players to participate in Major League Baseball than would have been possible otherwise. (D)</p> Signup and view all the answers

In the context of Becker's theory, how does the presence of unprejudiced employers impact discriminatory employers?

<p>Unprejudiced employers force discriminatory employers to pay higher wages to black workers, eventually leading to equal pay for all. (B)</p> Signup and view all the answers

What is the key assumption underlying the economic model presented in the text regarding the impact of discrimination on the market supply of players in Major League Baseball?

<p>The quality of play among black and white players is equal. (D)</p> Signup and view all the answers

What is the primary weakness of Becker's theory of discrimination as presented in the text?

<p>It overestimates the power of competition to eliminate discrimination in all cases. (B)</p> Signup and view all the answers

Based on the information provided, what is the main reason why discriminatory employers in a non-competitive market might be able to continue their practices?

<p>Workers in non-competitive markets have fewer alternatives and cannot readily seek employment elsewhere. (D)</p> Signup and view all the answers

What is the implication of the statement "Although professional sports markets are not perfectly competitive, the pressure to win games and championships is a powerful motivation for owners to overcome their prejudices"?

<p>Even in non-competitive markets, the inherent competitive nature of professional sports can serve as a force for social change. (A)</p> Signup and view all the answers

Which of the following could be considered a possible limitation of the economic theory of discrimination as presented in the text?

<p>It does not adequately address the role of social and cultural factors in perpetuating discrimination. (C)</p> Signup and view all the answers

Under what conditions might the presence of unprejudiced employers effectively eliminate discriminatory practices?

<p>When the market for labor is competitive, enabling unprejudiced employers to undercut discriminatory employers. (B)</p> Signup and view all the answers

Flashcards

Economic Approach to Discrimination

The study of how discrimination impacts economic outcomes, focusing on the results rather than the reasons behind it.

Prejudice

A feeling or emotion towards a particular group, often rooted in prejudice and stereotypes.

Discrimination

An action taken based on prejudice, often leading to unequal treatment or opportunities.

Taste for Discrimination

A concept suggesting that individuals have a preference for associating with certain groups, potentially leading to unequal outcomes.

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Becker's Theory of Discrimination

The theory that prejudice can influence economic outcomes, causing wages to rise for preferred groups and decrease for non-preferred groups.

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Taste for Discrimination's Impact

The outcome of a preference for specific groups, impacting wages and employment opportunities.

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Preference for Hiring or Working with Certain Groups

A desire to work, associate, or engage with certain groups over others, potentially due to prejudice or perceived benefits.

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Impact of Widespread Taste for Discrimination on Wages

Wages rising for preferred groups and decreasing for non-preferred groups due to widespread prejudice.

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Discrimination Coefficient

A positive value indicating the degree to which an employer prefers one group over another. A higher coefficient signifies stronger discrimination.

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Psychological Cost of Discrimination

The financial penalty an employer voluntarily incurs due to their preference for one group over another.

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Wage Differential

The situation where an employer pays individuals from a preferred group higher wages than equally qualified individuals from a non-preferred group.

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Low Wage Acceptance

The situation where an employer is willing to pay a lower wage to individuals from a non-preferred group because they are willing to accept it.

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Discriminatory Market

The situation where employers with a taste for discrimination pay higher wages to individuals from a preferred group, creating a market where wages are higher for that group.

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Profit Reduction due to Discrimination

The situation where an employer's preference for a certain group leads to reduced profitability, but they still choose this strategy because it aligns with their personal preferences.

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Discriminatory Employers

Individuals who have strong feelings of prejudice towards a group and are willing to accept costs, either financial or social, to avoid interaction with that group.

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Competitive Advantage of Non-Discriminatory Employers

The concept that less discriminatory employers are likely to succeed in competitive markets while highly discriminatory ones might struggle due to higher costs associated with their preferences.

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Discrimination in Non-Competitive Markets

When firms discriminate in a market where workers have no other options, they can perpetuate their discriminatory practices indefinitely.

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Consequences of Discrimination

The impact of discrimination on wages and employment opportunities, leading to increased wages for preferred groups and decreased wages for non-preferred groups.

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Large Labor Pool and Discrimination

The idea that when a market is flooded with qualified workers, restricting access to a specific group can still result in equal wages, but only for the preferred group.

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Employer Discrimination

A situation where employers are willing to pay more for employees from a certain group, even if they have the same productivity as other groups.

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Discrimination Coefficient (dε)

The additional amount employers are willing to pay to work with a preferred group, even if they are equally productive.

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Higher Demand and Wages for the Preferred Group

The demand for the preferred group is higher due to discrimination, leading to higher wages compared to the non-preferred group.

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Unequal Access to Work

If the taste for discrimination is strong enough, the non-preferred group might not be hired at all, regardless of their skills.

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Comparing Two Equally Skilled Players

A comparison of two equally skilled players from different groups, where one player (the preferred group) might be chosen based on prejudice, even if the other player is equally qualified.

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Employer Utility vs. Profit Maximization

The concept that an employer is willing to sacrifice profits to avoid working with a particular group, even if it means hiring less productive or more expensive employees.

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Becker's Model of Discrimination

A model that explains how employers might discriminate based on their personal preferences, even if it means sacrificing profits.

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Impact of Discrimination

The model explains how discrimination can affect wages and access to work, and can be measured by the discrimination coefficient.

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Consumer Discrimination in Sports

Consumer discrimination in sports refers to fans favoring particular teams or players based on factors like race or ethnicity, often resulting in unequal treatment or opportunities.

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Decline of Consumer Discrimination in MLB

The decline in consumer discrimination in MLB, as evidenced by fan voting for All-Stars, suggests a positive shift towards more inclusive decision-making in sports.

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Consumer Discrimination in International Football

The presence of consumer discrimination in international football, manifested through racist chants, banana throwing, and stadium bans, highlights a persistent issue of prejudice and unfair treatment in the sport.

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Contradictory Evidence on NBA Discrimination

Contrasting findings on discrimination in NBA salaries, with Hamilton showing evidence of discrimination and Gius and Johnson showing no evidence in the following year, indicate the complexity and inconsistencies in assessing discrimination across different sports.

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TIDES Report on US Sport Discrimination

Research by TIDES, publishing annual Racial and Gender Report Cards, suggests declining racial discrimination in US professional sports.

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Gender Inclusion in US Sport Management

The lack of progress in gender inclusion in senior management within US professional sports, with only the WNBA scoring above C- for gender diversity, indicates the continued need for improvement in this area.

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Gender Inequality in US Sport Coaching and Officiating

Despite progress in some areas, there remains a significant lack of female representation in coaching and officiating roles in US professional sports, highlighting the need for greater inclusivity across all levels of the industry.

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Stephanie Frappart's Achievements in European Football

Stephanie Frappart's groundbreaking achievements as the first woman to referee major men's matches in European football demonstrate a positive step towards greater gender inclusion in the sport.

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Gender Equity in Sports

The practice of ensuring that opportunities, resources, and treatment are equal for individuals of all genders in sports.

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USWNT Lawsuit

The US Women's National Team (USWNT) sued the US Soccer Federation (USSF) for unequal pay, arguing that the federation violated the Civil Rights Act.

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USWNT Settlement

The settlement reached between the USWNT and USSF, which granted $24 million to the players but did not address the disparity in FIFA World Cup prize money for men and women.

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US Soccer Equal Pay Agreement

A new agreement between US Soccer and both men's and women's national teams, ensuring a 50/50 split of revenue and equal pay, including FIFA World Cup prize money.

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World Cup Prize Money Disparity

The significant financial gap between the women's and men's World Cup prize money, primarily driven by differences in sponsorship revenue.

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Testing Gender Discrimination in Sports

The challenge in proving gender discrimination in sports due to the difficulty of comparing men's and women's performances in identical conditions.

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Billie Jean King's Demand

The demand by Billie Jean King, a prominent tennis player, for equal prize money in the US Open, which led to the equalization of prize money for men and women.

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Justification for Unequal Pay in Tennis

The argument that men should be paid more in tennis because their matches are longer and men's tennis is more popular, despite questionable evidence.

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Study Notes

Economics of Discrimination in Sports

  • Sports reflect societal biases, and discrimination exists.
  • Income data for different ethnic groups in the U.S. shows disparity in education levels and average income.
  • Economic theory distinguishes between prejudice (emotion) and discrimination (action).
  • Becker's theory: People can have a taste for discrimination, similar to tasting preferences.
  • Employer discrimination: Firms may sacrifice profits to avoid unwanted associations.
  • European hockey players faced discrimination in the NHL (e.g. no Europeans allowed until 1965).
  • Measuring discrimination: Discrimination coefficient (d) represents additional cost of associating with a non-preferred group.

How to Measure Discrimination

  • Discrimination coefficient (d) reflects the extra amount someone is willing to pay to associate with a preferred group.
  • If an employer is willing to pay a certain salary (w) for a non-preferred worker, they will be willing to pay a higher salary (w(1+d)) for a preferred worker.
  • The taste for discrimination leads to higher wages for preferred groups and lower wages for non-preferred groups.

Economic Theory of Discrimination (Employer Discrimination)

  • Becker's model highlights that employers prioritize their own utility over pure profit.
  • A team owner may reject equally skilled players because their team values are incompatible with another worker's group affiliation.
  • Discrimination may be costly for the discriminating team.
  • In scenarios with perfect competition, less-discrimatory employers are more successful.
  • Discrimination can persist even if the initial difference between groups is inaccurate.

Economic Theory of Discrimination (Statistical Discrimination)

  • Statistical discrimination: Judging an individual's productivity based on group averages.
  • This type of discrimination is more complex than other types, relying on inaccurate presumptions.
  • If employers treat groups differently based on inaccurate assumptions, then discrimination can persist even if the initial perceived group difference is inaccurate.

Economic Theory of Discrimination: When Markets Aren't Competitive

  • Competition is crucial in reducing discriminatory practices.
  • In noncompetitive environments, discrimination can persist indefinitely.
  • Examples of discrimination that existed in MLB (1888-1947) and other sports leagues because of systemic societal factors.
  • This type of discrimination makes less-discrimatory employers more successful.

Economic Theory of Discrimination (Employee Discrimination)

  • Employees may prefer certain coworkers.
  • Employees with discriminatory preferences, even if employers don't discriminate, have an effect on the workplace.
  • The effect of individual bias on the outcome of a market.

Consumer Discrimination

  • Consumer discrimination: Consumers may prefer not to interact with members of a certain social group.
  • Consumer preference can be a significant factor in pay and employment disparities.
  • Certain market forces don't eliminate consumer discrimination over time.

Toward Equal Access: Racial and Gender Discrimination

  • Recent studies show that racial discrimination, while present in the past, doesn't affect labor practices in major U.S. sports leagues.
  • In many leagues other than the WNBA, women are not heavily involved in coaching or management positions.
  • Progress towards equal access, but significant disparity remains.

Toward Equal Access: Role Discrimination

  • Role discrimination: Systematically assigning minorities to specific positions within a team.
  • Racial and gender minorities are frequently relegated to less visible or less compensated roles.
  • These positions often affect compensation and can create a less dynamic market.

Toward Equal Access: Discrimination by Officials

  • Officials may give certain players disproportionate penalties (e.g. fouls).
  • Official bias can affect an organization's popularity and results.
  • Racial and gender biases, if uncorrected, create inequities in pay and opportunity.

Gender Equity in Competitive Sports

  • Sports organizations, including FIFA, have a longer history of discriminatory practices and policies.
  • Gender equity in sports is a complex issue with many factors affecting the disparity between the compensation for male and female athletes, such as media attention, fan interest, and the perceived significance of the sport.
  • While significant progress has been made, a substantial gender pay gap still exists.
  • The history of discrimination suggests a lengthy battle for equality in both the treatment and financial compensation of female athletes.

Toward Equal Access: Meaningful Progress

  • There has been significant progress in women's success in broadcast positions and refereeing in men's sports recently.
  • This shows that over time, with the combination of societal pressure and progressive legislation, sports can change its history and give more opportunities for women.

Toward Equal Access: The Troubling Case of NFL Head Coaches

  • NFL head coaches have not seen diverse candidates emerge in the sport.
  • Historically, there has been a lack of diversity among NFL head coaches.
  • The Rooney Rule tries to increase diversity in this area, but results have been unimpressive so far.

Toward Equal Access: Trans, Nonbinary, and Intersexed Athletes

  • The consideration of gender identity in sports is complex and recently more controversial.
  • Defining gender is a complex and ongoing discussion in sport.

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Description

This quiz explores the economic theories surrounding discrimination, particularly focusing on Becker's theory and its implications in the workforce. It investigates the distinctions between prejudice and discrimination and the factors contributing to wage variations due to discrimination. Test your understanding of key concepts such as the discrimination coefficient and the impact of tastes for discrimination in sports like hockey.

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