Answer to Question #152514 in Macroeconomics for Talha

Question

3- In 2006, Evo Morales assumed the presidency in Bolivia, a South American country in which official commerce is done in Spanish. Morales was the first Bolivian president of indigenous descent. As president, he quickly instituted reforms that were designed to reduce discrimination against indigenous populations with the aim of eventually reducing inequality. Suppose discrimination before Morales took two forms–discrimination in education by not providing state funds to educate all children (and particularly not educating indigenous children in Spanish), and discrimination in the job market by firms not willing to hire indigenous workers. a) In terms of education, which policy would be better at combating discrimination and inequality: b) In terms of the job market, which policy would be best at combating discrimination and inequality: (1) increasing the minimum wage, (2) requiring all firms with at least 50 workers to hire some indigenous workers,

Answer 1

A) In terms of education, the policy would be better at combating discrimination and inequality is the the restructuring of educational provision. For example, where schooling provision is reorganized, this may sometimes lead to intensifying the divisions between different types of schools, or between schools within the same category.

B) In combating discrimination in terms of the job market, the development of an audit culture in job, where staffs and employees are rated according to the successful outcomes of their employers may lead to unintended or perverse outcomes.