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GENDER : :silhouettes: (LABOUR MARKET DISCRIMINATION (Neoclassical Theory,…

- - - - Pay penalty associated
      - Labour market interruptions main causes of women;s labour market disadvantage
- - - - Employers, Workers, Consumers
    - - Females
    - - More prejudice firms employ higher proportion of male workers than their more egalitarian rivals
        
        Egalitarian firms face lower unit labour costs & make greater profits, and can charge lower prices than discriminating rivals
      - Face higher wage bills than more equal firm
      - Higher profits attracts new entrants - entice fims to change recruitment policies in favour of women
        
        New hiring policies & new entrants INCREASE demand for female workers - INCREASING female employment - RAISING female wage - narrowing sex gap
      - Discriminating firms must employ women or face losses & declining market share
    - - Imperfect market conditions may explain persistent nature of discrimination - why would decades of imperfect market interactions fail to erode wage and employment differentials?
      - Does not explain where taste for discrimination comes from
        
        More an analysis of labour market effects of discrimination
        
        Policy stemming from employer taste model - adjusting behavior through equal pay and opportunity laws - address symptoms
    - - Employment discrimination may be more significant labour market result of prejudice than wage discrimination
      - Women must always work to a higher standard than male colleages at any given job level & to higher standard than required
      - Consequence of employer discrimination: equally produtive men & women occupy different jobs and receive different wages
  - - - Males' PERFECTLY ELASTIC (horizontal)
- - - - Differentials persist over time because of limited & imperfect interactions between 2 segments
  - - - Women crowded into remaining more accessible jobs
      - Discriminatory access criteria into male job markets - restricts labour supply - labour supply shifts left with females into F market - male wages RISE - female wages FALL
- - - - DECREASE in firm value
      - YOUNGER & INEXPERIENCED BOARD MEMBERS - female directors had less top-level experience - only 32% had prior CEO experience
      - DETERIORATION IN OPERATING PERFORMANCE