26 Jul WHAT PERCENTAGE OF THE TOTAL EMPLOYMENT DOES THIS REPRESENT?
Consider two affirmative action plans. Suppose that a firm has 1000 employees 50 of whom are black Show more Consider two affirmative action plans. Suppose that a firm has 1000 employees 50 of whom are black and 950 of whom are white. Thus 5 percent of the companys employees are black. Let the turnover rate in the company be 10 percent per year and suppose that 10 percent of the local labor force is black. Affirmative action plan 1 calls for all blacks to be hired until the portion of black employees in the firm equals the portion of blacks in the labor force. Plan 2 calls for a portion of blacks to be hired every year that equals the portion of blacks in the labor force. The following table represents the composition of this companys labor force after the first year of each affirmative action plan. Plan 1 Plan 2 Number of Blacks Lost New Blacks Hired Net Gain Total Number of Black Worker Percent of Workforce Black With plan 1 how many blacks will be employed at the firm one-year into the hiring plan? What percentage of the total employment does this represent? Fill in the first column of the table for plan 1. With plan 2 how many blacks will be employed at the firm one-year into the hiring plan? What percentage of the total employment does this represent? Fill in the second column of the table for plan 2. Suppose the ultimate goal under the affirmative action plan is a workforce that is 10 percent black as in the local labor force. Would an increase in the turnover rate increase or decrease the number of years that it would take to achieve this goal? Do the best jobs tend to have relatively high or low turnover rates? Which local population is the relevant one for the labor market? Consider the national state county and city labor markets. Show less
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