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Chapter 17: Problem 19

Daniel Hamermesh, an economist at the University of Texas, has done a great deal of research on labor markets. According to an article in Forbes, Hamermesh wrote that "below-average-looking men earn \(17 \%\) less than those considered good-looking, while below-average-looking females earn \(12 \%\) less than their attractive counterparts." Is this difference in earnings due to economic discrimination? Briefly explain.

Short Answer

Expert verified
The difference in earnings between good-looking and below-average-looking individuals could potentially be a case of economic discrimination. However, this can only be confirmed if productivity factors remain constant. If physical appearance influences productivity, the earnings difference may not entirely account for discrimination.

Step by step solution

01

Understand Economic Discrimination

Economic discrimination refers to the differential treatment of individuals based on their characteristics, like race, gender, age, or in this case, physical appearance, that does not affect their productivity. It occurs when individuals with the same productivity levels are paid differently.
02

Interpret the Findings

The research mentions a pay difference between below-average-looking and good-looking individuals, where the former group faces a pay disadvantage. They earn less than their good-looking counterparts, with the difference being \(17 \%\) for men and \(12 \%\) for women.
03

Analyze if it's Economic Discrimination

To establish this pay difference as a case of economic discrimination, we need to ensure that looks do not affect productivity. If appearance has no influence on productivity, and despite having equal work productivity, less attractive people are paid less, then it is a clear case of economic discrimination. However, if looks positively affect productivity - for example, attractive individuals might have better social skills that improve their productivity - the pay difference could be justified.

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