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Problems 2, 6, 8. 2. Suppose that MRP, = 20 - 0.51 for left-handed workers, where L = the number of left-handed workers and MRP,

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Problems 2, 6, 8. 2. Suppose that MRP, = 20 - 0.51 for left-handed workers, where L = the number of left-handed workers and MRP, is measured in dollars per hour. The going wage for left-handed workers is $10 per hour, but employer A discriminates against these workers and has a discrimination coefficient, D, of $2 per hour. Graph the MRP, curve, and show how many left-handed workers employer A hires. How much profit has employer A lost by discriminating? 6. Sunnose that the hourly marginal revenue product of all workers in a particular labor market is MRP, = 20 - L, where L = the number of workers. The hourly wage rate for women in this market is W = $5.75. What is the gap between MRP, and wage in this labor market if L = 12? Is this gap a reliable measure of discrimination against women in this market? 8. Suppose that a researcher estimated the relationship between salary, gender, and age among a group consisting of male workers and female workers but ignored the fact that, on average, male workers have more work experience than female workers do. The estimated regression of salary on gender and age is Si = 21354.83 + 239.45 Gi + 93.17 A; (15252.9) (95.6) (29.6) where S = salary of a worker, G = 1 if the worker is male and 0 if the worker is female, and A = the employee's age. Standard errors of the coefficients are in parentheses. With experience included in the regression, the estimated regression is Si = 21177.75 + 226.27 G; + 89.73 A; + 443.41 Xi (16111.3) (186.8) (34.6) ( 47.7 ) where X = the years of work experience of the worker. Comparing the two estimated regressions, does salary discrimination by gender appear to be occurring? Discuss the implications of omitting the experience variable in the first regression

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