Question

A. Using a labor market graph and a few well chosen sentences a situation in which athletes that immigrate to the United States may be discriminated against, despite earning a higher wage than those that are native born. (10 points)

B. Using a monopsony wage market model and a few well chosen sentences, explain my sports league are often willing to give major wage concessions to player’s unions in order to stop the entrance of a rival league into the market. (10 points)

Answer 1

1) Despite earning a higher wage than those who are native born in UNited states, immigrated athletes do face discrimination in terms of other terms that is not related to wage only. It is more like  “equal pay for equal work, but unequal work” type of discrimination. For instance Immigrant ballplayers subject to MLB’s (Major League Baseball) reserve clause, ceteris paribus, suffer bargaining disadvantages. Also  foreigners earn smaller returns to years of service than native-born players.

In another example, While recruiting a college coach, all NCAA Division I schools seek the best coaches in the world for their teams. Equal opportunity programs and Title IX laws call for colleges to get the best coaches available for their teams. However, sometimes these laws interfere with immigration laws. A 1984 article by Abbott and Smith revealed that Title IX and equal opportunity laws were making women’s programs more equal to men’s programs, but immigration laws prevented the very best from coming to the United States