Evidence of Wage Discrimination Essay Example | Topics and Well Written Essays - 1000 words

Evidence of remuneration Discrimination - test ExampleClassical economists, such as Lewis 1954, widened the aspect of net to state that, wage determines the overall train of employ ment.2. What will happen to the differential between wages of men and women of equal qualifications if multinational companies keep base to southwest Korea and the process of gender arbitrage described in the article continues? Why?Sexism affects productivity adversely. Economists sacrifice established that gender arbitrage in fields of economic advancement reduces the pace of development. South Korea is really advanced technologically, however, its economy is not level with Japans economy. An insight into OECD policies reveals that Japan and South Korea birth equal concomitantors of production and economic growth capacities. Even so, South Korea still lags behind.According to Solidarity (2012), records indicate that a char in South Korea earns 27% less than what a man in the same posture would earn. Women make up less than 1 % of the managerial positions. This a very small percentage compared with the fact that, women in the UK and America account for 10% of executive positions. Modern economics recognizes the potential women possess and, the implications of wage discrimination. South Koreas economic stagnation according to IMF statistics is evidence enough that human capital goes to waste.Wage discrimination in South Korea is deeply rooted in the cultural beliefs and practices. In the Korean culture, the womans role focuses on running domestic chores. Globalization has led the belief that relegation of women is an over-the-hill practice. It is important to note that, outdated cultural practices form the basis for lack of economic growth.Statistics indicate that wholly 60% of female graduates from South Korea between the ages of 24-65 years have employment. Therefore, the labor market in South Korea has a surplus. Firms hire men even though some women might have better qualifications than the men they hire.