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Question AA After controlling for age and education, it is found that the average woman earns $0.80 for every $1.00 earned by the average man.

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Question AA After controlling for age and education, it is found that the average woman earns $0.80 for every $1.00 earned by the average man. After controlling for occupation to account for compensating differentials (i.e.. maybe men accept riskier or more stressful jobs than women, and therefore are paid more), the average woman earns $0.92 for every $1.00 earned by the average man. The conclusion is made that occupational choice reduces the wage gap by 12 cents and discrimination is left to explain the remaining 8 cents. Explain why discrimination may explain more than 8 cents of the 20cent differential (and occupational choice may explain less than 12 cents of the differential}

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