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LABOR MARKET DISCRIMINATION Labor Economics Series.

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Presentasi berjudul: "LABOR MARKET DISCRIMINATION Labor Economics Series."— Transcript presentasi:

1 LABOR MARKET DISCRIMINATION Labor Economics Series

2 2 Tokoh Pejuang Wanita Indonesia Raden Adjeng Kartini 21 April 1879 – 17 September 1904

3 3 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 4 Fakta di Indonesia

5 5 Penduduk yang Bekerja (2007)

6 6 Jenis Pekerjaan Utama JENIS KELAMIN Jumlah PriaWanita Tenaga Profesional Kepemimpinan Tata Usaha TU Penjualan TU Jasa TU Pertanian Produksi Lainnya Jumlah

7 7 Rata-rata Upah (2006)

8 8 SEKTOR LAPANGAN PEKERJAAN PRIAWANITA 1 Pertanian, Kehutanan, Perburuan, Perikanan (Agriculture,Forestry,Hunting,Fishery) Pertambangan, Penggalian (Mining and Quarrying) Industri Pengolahan (Manufacturing Industries) Listrik, gas dan air (Electricity, Gaz and Water) Bangunan (Construction) Perdagangan Besar, Rumah Makan & Hotel (Wholesale Trade,Restaurant & Hotel) Angkutan, Pergudangan dan Komunikasi (Transportation,Storage & Communication) Keuangan, Asuransi,Jasa Perusahaan (Financing,Insurance,Business Services) Jasa Kemasyarakatan (Public Services) Rata-rata

9 9 Penduduk yang Bekerja Berdasarkan Jam Kerja Tahun 2007

10 10 Konsep Diskriminasi

11 11 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 :

12 12 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.

13 13 The Discrimination Coefficient

14 14 The Discrimination Coefficient The Economics of Discrimination (1957) Lauched for the first time by Gary S. Becker

15 15 •Basic Concept : Taste Discrimination •Assumption  Two types of workers : •White workers : wage  wWwW •Black workers : wage  wBwB The Discrimination Coefficient

16 16 •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 wB (1 + d), where d is positive number and is called : The Discrimination Coefficient The Discrimination Coefficient

17 17 •Suppose that wB 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.d. The Discrimination Coefficient

18 18 •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  w B (1 – n )

19 19 Labor Market Discrimination Analysis

20 20 Employer Discrimination

21 21 Skill and Labor Market Outcomes (2001) WHITEBLACKHISPANIC MaleFemaleMaleFemaleMaleFemale Highschool Graduate or more (Percent) Bachelor’s degree or more (Percent) Labor Force Participation Rate (Percent) Unemployment Rate (Percent) Annual Earnings (in $1,000) Annual Earnings (Full Time)

22 22 Fact : White Wage > Black Wage

23 23 •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 ( MP E ) Employer Discrimination

24 24 Employer Discrimination Production function: q = f ( EW EW + EB EB ) q  firm’s output EWEW  number of white workers hired EBEB  number of black workers hired

25 25 Employment in a non Discriminatory Firm

26 26 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 w W > w B, a firms that doesn’t discriminate will hire black workers up to the point where wB wB = VMP E 

27 27 The Employment Decision of a Firm That Does Not Discriminate Dollar Employment Black workers wage is less than white wage How many worker will be hired..?? ? VMP E w B = VMP E

28 28 Employment in a Discriminatory Firm

29 29 •The employer act as if black wage is not wB wB, but instead equal to wB wB (1 + d). Where d is discrimination coefficient. •The employer’s hiring decision based on a comparison w W and wB wB (1 + d) –Hire only blacks if wB wB (1 + d) < wWwW –Hire only white if wB wB (1 + d) > wWwW Employment in a Discriminatory Firm

30 30 •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

31 31 •The white firm hires workers up to the point where : wW wW = VMP E •Assumption : w W > WBWB •The white firm is paying an excessively high price for its workers and hires relatively few workers ( ) Employment in a Discriminatory Firm WHITE FIRM

32 32 Dollar Employment VMP E The Employment Decision of a Prejudiced Firm White Firm

33 33 •Non discriminatory firms : w B = VMP E  •If discrimination coefficient d 0 : –Price of Black Labor  w B ( 1 + d 0 ) –Amount of Labor hired : w B ( 1 + d 0 ) = VMP E Employment in a Discriminatory Firm BLACK FIRM

34 34 Employment in a Discriminatory Firm BLACK FIRM The number of black workers hired, therefore, is smaller for firms that have larger discrimination coefficient.

35 35 The Employment Decision of a Prejudiced Firm Dollar Employment VMP E Black Firm Discrimination Coefficient

36 36 Discrimination and Profits

37 37 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

38 38 Dollar Discrimination Coefficient Black Firm Profit and Discrimination Coefficient  max ww dwdw 0 White Firm Max Profit

39 39 The Most Profitable Firm  Zero Discrimination and Profits

40 40 Labor Marker Equilibrium

41 41 •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 42 Labor Market Equilibrium Black-White Wage Ratio Black Employment 0 1 S R D D’ N

43 43 Employee Discrimination

44 44 •Diskriminasi dilakukan oleh “Fellow Worker” •Misal : White worker yang bekerja pada Black Firm dengan upah w W akan merasa mendapat upah w W (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 45 Customer Discrimination

46 46 •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 47 Customer Discrimination TYPE FIRM > 50 % BLACK CUSTOMER > 75 % WHITE CUSTOMER PERBEDAAN Customer & worker bertemu 58,0 %9,0 %49,0 % Customer & worker tidak bertemu 46,6 %12,2 %34,4 % Perbedaan --14,6 %

48 48 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

49 49 Measuring Discrimination

50 50 Measuring Discrimination Diskriminasi : selisih average wage, yaitu : Asumsi : Tenaga kerja terdiri dari •Male, dengan average wage •Female, dengan average wage

51 51 Measuring Discrimination Pengembangan model : Schooling mempengaruhi pendapatan Earning Function : •Male: •Female: menyatakan pendapatan pria meningkat bila mendapatkan tambahan 1 tahun pendidikan.

52 52 Measuring Discrimination Model Regresi :

53 53 Measuring The Impact of Discrimination on the Wage Dollars Schooling Women’s Earning Function Men’s Earning Function Women’s Schooling Women’s Earning Men’s Schooling Men’s Earning Measure Discrimination : Woman’s Earning Men’s Earning

54 54 Trend in Female-Male Wage Ratio (USA )

55 55 Global Gender Gap 2007 INDONESIA Rank2007: 81 Score2007: ( 1 = equality ) Rank2006: 68 Score2007: ( 1 = equality )

56 56 Global Gender Gap 2007

57 57 Global Gender Gap 2007 INDONESIA

58 58 Terima kasih…


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