Question
Assume that, on average, men and women have different preferences regarding the work environment. Suppose, for example, that while both women and men prefer being
Assume that, on average, men and women have different preferences regarding the work environment. Suppose, for example, that while both women and men prefer being around other people to working solitary, the average woman prefersmore than the average manworking collaboratively and being in what is usually called a "people" job. Further suppose that different firms have different costs of providing these work conditions: some jobs, like real-estate sales, are naturally of this type, while others, such as factory work, are of a more solitary nature. Use a hedonic model to examine pay for the average man versus pay for the average woman under these circumstances, all else equal. Does the model have anything to say about whether men are any better off (have higher utility) than women? Explain.
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