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Consider a labor market for men and women with two types of workers in each group, high ability ( H types ) , and low
Consider a labor market for men and women with two types of workers in each group, high ability H types and low ability L types H types among men and women have a productivity of and L types among men and women have a productivity of Among women rds are H types, and rd are L types, and among men are H types, and L types. Suppose affirmative action for women reduces the cost of college for all women to What happens to the average wage gaps between men and women? Recall that employers know the shares of H and L types, but cannot observe individual types.
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