Question 2 (5 marks)

a. A student writes the following: The national gender pay gap for Australia is 13.9 % as calculated by WGEA using data from the ABS. This clearly indicates the existence of wage discrimination against women in the workplace". Do you agree with this reasoning? Briefly explain. (3 marks)

b. Milton Friedman asserts that "requiring equal pay for equal work will be to harm women" (see in the Moodle https://moodle.uowplatform.edu.au/mod/url/view.php?id=2668568; Milton Friedman- Case against Equal Pay for Equal Work). Discuss the economic rationale behind the above proposition. (2 marks)