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Lesson 3 - Regulation of Monopoly

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Lesson 3 - Regulation of Monopoly Powered By Docstoc
					Lesson 4 - Regulation
     of Labor.
  Anti-discrimination, equal pay and equal
  employment opportunity laws, labor
  safety laws, labor unions. Occupational
  licensure – health-care and elsewhere.

 Suggested Reading: Friedman – chapter 7. A description of anti-
 discrimination legislation and the regulatory structure can be found
 here http://www.albany.edu/affirmative_action/laws.html
        A multitude of regulations
   Trade unions
   Fair labor laws
   Equal employment opportunity and equal pay
    laws.
     Executive order 11246, the OFCCP
     The Civil Rights Act of 1964 (1991) – title VII and
      title IX.
     The Equal Pay Act.
     College admissions.
                 Trade Unions
   They are legal monopolies
   They can
     raise wages
     maintain the number of jobs

     but not both

   The closed shop – a zero sum game
    Some economics of discrimination
   Discrimination is a bad thing
       It derives from bigotry and prejudice and can be extraordinarily
        destructive
       But only when it is given expression by the power of the state (the
        military).
   In competitive markets discrimination is costly to discriminators
       The Becker model – tastes are given.
       Other approaches – Arrow, Krueger, Hutt, Lewin.
        see my “William Hutt and the Economics of Apartheid”
        Constitutional Political Economy 11(3), October 2000,
        available at: http://www.utdallas.edu/~plewin/Hutt.pdf
   Arguments against the competitive model
       No non-discriminators
       Social conditioning
       Too much time
                     Remedies
   Equal pay for equal work
       Comparable worth
   Title VII
     The EEOC
     Outcomes rather than intentions

   Affirmative action
     Affirmative action plans
     Diversity

     Proportions and quotas
Evaluation of anti-discrimination law
           and regulation
   Incentive and knowledge problems
   Presumed guilty – presumed a victim
   Discrimination in order to remedy
    discrimination?
   Violations and intrusions
   Is it effective? At what lingering cost?
Other labor laws and regulations
 Unemployment     insurance
 Workman’s compensation

 OSHA requirements

 Fair labor standards Act

				
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