. Labor market discrimination. Cindy, a tenured, full professor of French literature at a large university, is paid $60,000 per year. The university reports median salaries by gender and rank as a new initiative on faculty compensation. From reading the report, Cindy 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. What factors might explain Cindy's position in the wage distribution? Why might or might not the university be engaged in gender discrimination?

c. Derive the Oaxaca measure of discrimination.