Suppose that labor market experience is the only characteristic that influences wages. Suppose also that males and females have different levels of experience and have different "wage functions" (equations that show relationship between wages and experience). The male and female wage functions are given by the following:

Based on the given information, if the average number of years of experience for males is 20 years and the average number of years of experience is 16 years, the pay gap between men and women will be______ per hour.

 a. $3 

b. $4 

c. $7 

d. $16 

e. $20

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Males Wage = 10 +.5 Experience Females Wage = 9+.25 Experience