Micro Mod 22: Readings for seventh edition

Micro Mod 22: Readings for seventh edition

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Microeconomics, Module 22: "Wages and Discrimination"

Required reading for seventh edition:

(The attached PDF file has better formatting.)

Updated: December 2, 2007

{The Landsburg textbook is excellent. We say to read certain sections and to skip others. This does not mean that certain sections are better; it means that the homework assignments and exam problems are based on the sections that you must read for this course. Some of the skipped sections are fascinating, but they are not tested.}

Read section 16.3 on pages 512-515. Actuaries are higher paid than most professions (teachers, underwriters, most business managers) but not as highly paid as some other professions (doctors, lawyers). Part of the cause is the actuarial examination program, though the effects are complex. It is hard to separate the signaling effect from the knowledge effect.

Read section 16.4 on pages 516-518. Question: Are male actuaries paid more than female actuaries? Most women say yes; most men say no. This section will probably not change your view, but it explains some of the reasons for possible discrimination. Landsburg does not believe that irrational discrimination can maintain itself for long in a competitive market; not all persons agree with this perspective.

By the way, the male/female percentages of students has changed from predominantly male 50 years ago to predominantly female now. Actuaries disagree on the reasons for this and the probable effects on male vs female salaries. It is a worthwhile exercise to use Landsburg’s ideas to explain this change and post your perspective on this discussion forum to see if other candidates agree.

Read the last two paragraphs of the summary on page 519.

Micro.Module22.readings.Ed7.pdf (790 views, 21.00 KB)
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