labor market discrimination
DESCRIPTION
LABOR MARKET DISCRIMINATION. Labor Economics Series. Tokoh Pejuang Wanita Indonesia. Raden Adjeng Kartini 21 April 1879 – 17 September 1904. Pemikiran Raden Adjeng Kartini. Dunia wanita hanya sebatas tembok rumah. Tidak bebas mendapatkan akses pendidikan. - PowerPoint PPT PresentationTRANSCRIPT
LABOR MARKET DISCRIMINATION
Labor Economics Series
2
Tokoh Pejuang Wanita Indonesia
Raden Adjeng Kartini21 April 1879 – 17 September 1904
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Pemikiran Raden Adjeng Kartini
• Dunia wanita hanya sebatas tembok rumah.
• Tidak bebas mendapatkan akses pendidikan.
• Dipingit dan dinikahkan dengan pria yang tidak dikenal.
Adanya keinginan untuk memperbaiki kondisi kaum wanita yang disebabkan kungkungan adat, antara lain :
4
Fakta di Indonesia
5
Penduduk yang Bekerja (2007)
0
10.000.000
20.000.000
30.000.000
Wan
itaP
ria
Wanita Pria
6
Penduduk yang Bekerja (2007)
Jenis Pekerjaan Utama JENIS KELAMIN
Jumlah Pria Wanita
Tenaga Profesional 1.945.782 1.857.339 3.803.121
Kepemimpinan 310.089 57.295 367.384
Tata Usaha 2.608.947 1.383.556 3.992.503
TU Penjualan 8.590.673 8.046.116 16.636.789
TU Jasa 3.351.697 2.992.762 6.344.459
TU Pertanian 26.479.175 15.753.497 42.232.672
Produksi 18.446.465 5.325.368 23.771.833
Lainnya 418.454 15.926 434.380
Jumlah 62.151.282 35.431.859 97.583.141
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Rata-rata Upah (2006)
0
400.000
800.000
1.200.000
1.600.000
Wan
ita Pri
a
Wanita Pria
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Rata-rata Upah (2006)
SEKTOR LAPANGAN PEKERJAAN PRIA WANITA
1 Pertanian, Kehutanan, Perburuan, Perikanan
(Agriculture,Forestry,Hunting,Fishery) 438.149 234.586
2 Pertambangan, Penggalian (Mining and Quarrying) 1.541.24
1771.415
3 Industri Pengolahan (Manufacturing Industries) 826.257 583.768
4 Listrik, gas dan air (Electricity, Gaz and Water) 1.176.16
01.338.737
5 Bangunan (Construction) 734.070 1.073.573
6 Perdagangan Besar, Rumah Makan & Hotel (Wholesale
Trade,Restaurant & Hotel) 806.110 621.248
7 Angkutan, Pergudangan dan Komunikasi (Transportation,Storage &
Communication) 934.761 944.419
8 Keuangan, Asuransi,Jasa Perusahaan (Financing,Insurance,Business
Services) 1.422.25
21.461.926
9 Jasa Kemasyarakatan (Public Services) 1.126.55
9789.557
Rata-rata 827.101 612.131
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Penduduk yang Bekerja Berdasarkan Jam Kerja Tahun 2007
0
15.000.000
30.000.000
45.000.000
WanitaPria
Wanita 803.388 14.623.275 20.005.196
Pria 1.798.703 15.615.701 44.736.878
<1 jam 1-35 jam >35 jam
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Konsep Diskriminasi
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Konsep Diskriminasi
Differences in EARNINGS and EMPLOYMENT OPPORTUNITIES among equally skilled workers employed in the same job simply because of the worker’s race, gender, national origin, sexual orientation, or other seemingly irrelevant characteristics.
George Borjas :
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Konsep Diskriminasi
Discrimination means treating people differently and less favourably because of characteristics that are not related to their merit or the requirements of the job.
These include race, colour, sex, religion, political opinion, national extraction and social origin.
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The Discrimination Coefficient
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The Discrimination Coefficient
The Economics of Discrimination (1957)
Lauched for the first time
by Gary S. Becker
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• Basic Concept : Taste Discrimination
• Assumption Two types of workers :
• White workers : wage wW
• Black workers : wage wB
The Discrimination Coefficient
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• If the employer is prejudiced againts black, employer gets disutility from hiring black workers.
• Disutility : employer will act as if costs for black worker wB (1 + d), where d is positive number and is called :
The Discrimination Coefficient
The Discrimination Coefficient
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• Suppose that wB = $10, and that d =0,5 ; the employer will then act as if hiring a black worker costs $ 15
• The greater the prejudiced, the greater is the disutility from hiring black workers, and the greater is the discrimination coefficient d.
The Discrimination Coefficient
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• If these black employers prefer to hire black workers, they will act as if hiring a black worker is cheaper than it actually is.
The Discrimination Coefficient
Nepotism Coefficient wB (1 – n )
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Labor Market Discrimination Analysis
FIRM
Non DiscriminatoryFirm
W = VMP
DiscriminatoryFirm
White Firmagaints Black
Black Firmagaints Black
DiscriminationCoefficientis very High
DiscriminationCoefficient
is relatively Low
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Employer Discrimination
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Skill and Labor Market Outcomes (2001)
WHITE BLACK HISPANIC
Male Female Male Female Male Female
Highschool Graduate or more (Percent)
84.3 85.2 78.5 78.9 56.1 57.9
Bachelor’s degree or more (Percent)
29.1 25.4 16.4 17.5 11.0 11.2
Labor Force Participation Rate (Percent)
79.9 59.9 72.1 65.2 83.8 59.3
Unemployment Rate (Percent)
4.7 3.6 8.0 7.0 5.2 6.6
Annual Earnings (in $1,000) 49.8 29.6 33.5 26.0 30.8 22.3
Annual Earnings(Full Time)
55.4 37.1 38.5 30.8 34.3 28.0
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Fact :
White Wage > Black Wage
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• Assumption : White Workers and Black Workers are
Perfect Subtitutes in Production.
• Firms’s output depends on the total number of workers hired, regardless of their race have the same Marginal Product of Labor ( MPE )
Employer Discrimination
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Employer Discrimination
Production function:
q = f ( EW + EB )
q firm’s output
EW number of white workers hired
EB number of black workers hired
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Employment in a non Discriminatory
Firm
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Employment in a non Discriminatory Firm
• Both groups of workers have the same Value of Marginal Product, a non discriminatory firms will hire whichever group is Cheaper
• Suppose that wW > wB , a firms that doesn’t discriminate will hire black workers up to the point where
wB = VMPE *BE
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The Employment Decision of a Firm
That Does Not Discriminate
Bw
Dollar
Employment*BE
Black workers wage is less than white
wage How many workerwill be hired..??
?VMPE
wB = VMPE
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Employment in a Discriminatory Firm
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• The employer act as if black wage is not wB , but instead equal to wB (1 + d). Where d is discrimination coefficient.
• The employer’s hiring decision based on a comparison wW and wB (1 + d)
– Hire only blacks if wB (1 + d) < wW
– Hire only white if wB (1 + d) > wW
Employment in a Discriminatory Firm
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• As long as black and white workers are perfect subtitutes, firms have a segregated workforce.
• Employer’s who have little prejudice and hence have small discrimination coefficient, will hire only BLACKS (called “Black Firm”).
• Employer’s who are very prejudice and have very large discrimination coefficient, will hire only WHITES (called “White Firm”).
Employment in a Discriminatory Firm
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• The white firm hires workers up to the point where : wW = VMPE
• Assumption : wW > WB
• The white firm is paying an excessively high price for its workers and hires relatively few workers ( )
Employment in a Discriminatory Firm
WHITE FIRM
*WE
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Ww
Dollar
Employment*WE
VMPE
The Employment Decision of a Prejudiced Firm
White Firm
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• Non discriminatory firms :
wB = VMPE
• If discrimination coefficient d0 :– Price of Black Labor wB ( 1 + d0 )
– Amount of Labor hired :
wB ( 1 + d0 ) = VMPE
Employment in a Discriminatory Firm
BLACK FIRM
*BE
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Employment in a Discriminatory Firm
BLACK FIRM
The number of black workers hired, therefore, is smaller for firms that have larger discrimination coefficient.
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The Employment Decision of a Prejudiced Firm
Bw
*BE
0BE
Dollar
Employment
VMPE
Black Firm
1BE
01 dwB
11 dwB
Discrimination Coefficient
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Discrimination and Profits
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Firms that discriminate lose on two counts :
• The prejudiced employer could have hired the same number of black worker at lower wage. Because black and white workers are perfect subtitutes.
• Discriminatory black firms are hiring too few workers ( or ) they are giving up profits in order to minimize contact with black workers.
Discrimination and Profits
0BE
1BE
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Dollar
DiscriminationCoefficient
BlackFirm
Profit and Discrimination Coefficient
max
w
dw0
White Firm
Max Profit
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The Most Profitable Firm
Zero Discrimination
Discrimination and Profits
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Labor Marker Equilibrium
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• Firm dengan Discrimination Coefficient :– Rendah cenderung Black Firm– Tinggi cenderung White Firm
• Asumsi : Supply Black Worker Perfectly Inelastic sejumlah N Black person tidak terpengaruh tingkat upah.
Discrimination and Profits
42
Labor Market Equilibrium
Black-WhiteWage Ratio
*)/( WB ww
Black Employment0
1
S
R
D
D’
)'/( WB ww
N
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Employee Discrimination
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• Diskriminasi dilakukan oleh “Fellow Worker”
• Misal : White worker yang bekerja pada Black Firm dengan upah wW akan merasa mendapat upah wW (1- d).
• Tidak berpengaruh terhadap “Profitability of Firms” karena white worker dan black worker adalah perfect subtitutes sehingga firm membayar jumlah upah yang sama.
Employee Discrimination
45
Customer Discrimination
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• Dikemukakan oleh Harry J. Holzer dan Keith R. Ihlanfeldt (1998) research di Atlanta, Boston, Detroit dan Los Angeles.
• Keputusan membeli tidak ditentukan oleh Actual Price ( p ) tapi oleh The Utility-Adjusted Price p (1 + d).
• Employer dapat mengatur tenaga penjualan sesuai kondisi.
Customer Discrimination
47
Customer Discrimination
TYPE FIRM> 50 %BLACK
CUSTOMER
> 75 %WHITE
CUSTOMERPERBEDAAN
Customer & worker bertemu 58,0 % 9,0 % 49,0 %
Customer & worker tidak bertemu 46,6 % 12,2 % 34,4 %
Perbedaan - - 14,6 %
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Customer Discrimination and NBA
Lawrence Kahn and Peter Sherer 1998) :
A study of attenance records indicates that replacing a black player with an
eqqually talented white player bring in about 9,000 additional fans per year.
At $50 a head (a very conservative estimate of ticket prices and concession revenues), the racial switch would increase annual team revenues by roughly $450,000
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Measuring Discrimination
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Measuring Discrimination
___
MW___
FW
_________
FM WWW
Diskriminasi : selisih average wage, yaitu :
Asumsi : Tenaga kerja terdiri dari• Male, dengan average wage
• Female, dengan average wage
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Measuring Discrimination
Pengembangan model :
Schooling mempengaruhi pendapatan
Earning Function :• Male :
• Female :
MMMM Sw
FFFF Sw
M menyatakan pendapatan pria meningkat bila mendapatkan tambahan 1 tahun pendidikan.
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Measuring Discrimination
Model Regresi :
FFFMMMFM ssWWW _________
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Measuring The Impact of Discrimination on the Wage
M
F
___
FW
Dollars
Schooling
Women’s Earning Function
___
MW
*Fw
__
Fs__
Ms
Men’s Earning Function
Women’s Schooling
Women’s Earning
Men’s Schooling
Men’s Earning
Measure Discrimination :*Fw
___
FWWoman’s Earning
Men’s Earning
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Trend in Female-Male Wage Ratio (USA 1930-1990)
0.541940 1950 1960 19701930 1980 1990
Year
0.57
0.60
0.63
0.66
0.69
0.72
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Global Gender Gap 2007
INDONESIA
Rank 2007 : 81Score 2007 : 0.6550 ( 1 = equality )
Rank 2006 : 68Score 2007 : 0.6541( 1 = equality )
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Global Gender Gap 2007
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Global Gender Gap 2007
INDONESIA
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Terima kasih…