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International Monetary Fund - The COVID-19 Gender Gap https://www.imf.org/en/Blogs/Articles/2020/07/21/blog-the-covid-19-gender-gap Consider a perfectly competitive labor market in which there are equal numbers of male and female

International Monetary Fund - "The COVID-19 Gender Gap"

https://www.imf.org/en/Blogs/Articles/2020/07/21/blog-the-covid-19-gender-gap

Consider a perfectly competitive labor market in which there are equal numbers of male and female workers. The wages of men and women are unknown. Now consider two companies in the market: Company A has discriminatory preferences against women (d = 0.5), but Company B does not have discriminatory preferences against women (d = 0). Which of these statements is true?

  1. Company A will earn a lower profit than Company B.
  2. If women earn lower wages, Company B will only hire women.
  3. If more women enter the labor market, women's relative wages will decrease.
  4. In a competitive market, Company A will be driven out of business.

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