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Bobbing for Widgets: Compensating Wage DifferentialsCatherine C. EckelTexas A&M University Melayne Morgan McInnesUniversity of South Carolina - Moore School of Business Sara J Solnickaffiliation not provided to SSRN Jean EnsmingerCalifornia Institute of Technology Roland G. Fryer Jr.Harvard University - Department of Economics; National Bureau of Economic Research (NBER); American Bar Foundation; University of Chicago Ronald A. HeinerGeorge Mason University - Department of Economics Gavin SammsHarvard University Katri SiebergUniversity of Tampere Rick K. WilsonRice University - Department of Political Science March 1, 2005 Journal of Economic Education, Vol. 36, No. 2, pp. 129-138, 2005 Abstract: Abstract: The authors describe a classroom game that introduces the concept of compensating wage differentials by allowing students to negotiate over the assignment of jobs and wages. Two jobs are designed so that neither job requires special skills, but one is significantly more unpleasant than the other. By varying the job titles and duties, students can see how wages respond to changes in job characteristics. The impact of various policy measures, such as comparable worth legislation and safety regulation, is also explored. This game can be conducted in a 50-minute class and requires only a deck of cards, poker chips, and a container of ice water.
Number of Pages in PDF File: 11 Keywords: comparable worth, compensating wage differentials, economics, education JEL Classification: A22, J3 Accepted Paper SeriesDate posted: July 21, 2011Suggested CitationContact Information
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