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One measure of gender wage discrimination is the portion of the gender wage gap that is explained by different prices employers pay for productive characteristics
One measure of gender wage discrimination is the portion of the gender wage gap that is explained by different prices employers pay for productive characteristics of males and females. After analyzing wage data using regression analysis, you obtain the following expressions for male and female wages: Wf=5+0.2*EDUC+0.3*EXP+0.5*TEN Wm=6+0.5*EDUC+0.5*EXP+0.5*TEN where Wf and Wm are the hourly wages of females and males, respectively, EDUC is years of education, EXP is total years of experience, and TEN is tenure with one's current employer. The average EDUC for males is 15 years, the average EXP for males is 20 years, and the average TEN for males is 6 years. For females the average EDUC is 14 years, the average EXP is 16 years, and the average TEN is 4 years. A-What would be the wage of an "average" female if employers paid the same prices for the productive characteristics of females as they do for those of males? B-Express the amount of current wage discrimination in percentage terms. In particular, compute what per cent of the average wage differential between males and females (measured in dollars) can be attributed to labour market discrimination. Round your answer to the nearest integer
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