labour econ

Question 45 10 pts Suppose that a pay equity plan has just been put in place in your organization. The pay equity consulting firm did a job evaluation and assigned points to each of the male-dominated and female- dominated jobs. It then estimated the following male and female pay lines by ordinary least squares regression, where Y denotes annual earnings, P denotes job evaluation points, and the subscripts m and f denote male and female respectively: Ym = 5000 + 100Pm Yf = 4000+80Pf Assume that the average job evaluation score was 300 points in male-dominated jobs and 200 points in female-dominated jobs. a) What is the average pay in male-dominated jobs and in female-dominated jobs? (3 points) b) Use a Oaxaca decomposition to determine the average pay differential between male- and female-dominated jobs into two components: a portion attributable to the differences in job evaluation points and a portion attributable to differences in pay for the same job evaluation points. (7 points) Upload Choose a File