Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Climate Policy And Nonrenewable Resources The Green Paradox And Beyond

Authors: Karen Vollebergh, Rick Van Der Ploeg

1st Edition

0262319845, 9780262319843

More Books

Students also viewed these Economics questions

Question

Personal role: This consists of service to family and friends.

Answered: 1 week ago

Question

The role of life: It consists of your own service to yourself.

Answered: 1 week ago