Homework Help is Here – Start Your Trial Now!
Business
Economics
Wr = 300 + 75s ve 14 years of schooling and women have 13 years of schooling. average male-female wage differential in the labor market? f this wage differential may be due to discrimination? Note that ways to calculate this, so do it both ways and compare the two a ur answer in percent terms. nen have surpassed men in educational attainment with women h cars of education and men having 14 What would the wrage gan

Wr = 300 + 75s ve 14 years of schooling and women have 13 years of schooling. average male-female wage differential in the labor market? f this wage differential may be due to discrimination? Note that ways to calculate this, so do it both ways and compare the two a ur answer in percent terms. nen have surpassed men in educational attainment with women h cars of education and men having 14 What would the wrage gan

Principles of Microeconomics
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter19: Earnings And Discrimination
Section: Chapter Questions
Problem 9PA
See similar textbooks
icon
Related questions
Question

5a

5b

5c

5. Suppose years of schooling, s, is the only variable that affects earnings. The equations for the weekly salaries of male and female workers in 1970 are given by: Wm = 500 + 100s Wr = 300 + 75s %3D On average, men have 14 years of schooling and women have 13 years of schooling. a. What is the average male-female wage differential in the labor market? b. How much of this wage differential may be due to discrimination? Note that there are two possible ways to calculate this, so do it both ways and compare the two answers you get. Place your answer in percent terms. c. By now, women have surpassed men in educational attainment with women having on average 15 years of education and men having 14. What would the wage gap be, assuming the wage equations remained unchanged? d. How much of this gap is unexplained by education? Use just one of the methods and place your answer in percent terms. e. What else besides discrimination may contribute to this gap?
Transcribed Image Text:5. Suppose years of schooling, s, is the only variable that affects earnings. The equations for the weekly salaries of male and female workers in 1970 are given by: Wm = 500 + 100s Wr = 300 + 75s %3D On average, men have 14 years of schooling and women have 13 years of schooling. a. What is the average male-female wage differential in the labor market? b. How much of this wage differential may be due to discrimination? Note that there are two possible ways to calculate this, so do it both ways and compare the two answers you get. Place your answer in percent terms. c. By now, women have surpassed men in educational attainment with women having on average 15 years of education and men having 14. What would the wage gap be, assuming the wage equations remained unchanged? d. How much of this gap is unexplained by education? Use just one of the methods and place your answer in percent terms. e. What else besides discrimination may contribute to this gap?
Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Nash Equilibrium
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Principles of Microeconomics
Principles of Microeconomics
Economics
ISBN:
9781305156050
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou…
Principles of Economics, 7th Edition (MindTap Cou…
Economics
ISBN:
9781285165875
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Microeconomic Theory
Microeconomic Theory
Economics
ISBN:
9781337517942
Author:
NICHOLSON
Publisher:
Cengage
Principles of Microeconomics (MindTap Course List)
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:
9781305971493
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Economics For Today
Economics For Today
Economics
ISBN:
9781337613040
Author:
Tucker
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS