Question
Say a firm produces widgets which sell for $500. Gloria learns that she makes $3,000 a month while her co-worker Jorge earns $3,500. She sues
Say a firm produces widgets which sell for $500. Gloria learns that she makes $3,000 a month while her co-worker Jorge earns $3,500. She sues for labor market discrimination. For each of the following case state if it is or isn't labor market discrimination. If your answer depends on an additional piece of information/assumption please state it.
a) Each worker can choose their own machines Gloria has smaller fingers and thus she only made 6 widgets while Jorge made 7 widgets.
b) One machine is better than the other and the boss picks who works on which machine. Last month Gloria made 6 widgets while Jorge made 7 widgets
c) It turns out that higher quality widgets sell for more money than lower quality widgets. We know Gloria that made 6 widgets while Jorge made 7 widgets.
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