2c)Labor Market Discrimination Problem

Derive The Oaxaca Measure Of Discrimination?

Given:

Female Tenured, Full Professor

Paid $60,000 Per Year

Her University Reports Median Salaries By Gender And Rank As A New Initiative On Faculty Compensation.

She Learns That She Is Paid $20,000 Below The Median For Male, Tenured, Full Professors.

She Is Also Paid $12,000 Below The Median For Female, Tenured, Full Professors.