Scenario 2 Suppose years of schooling, denoted by s, is the only variable in this model that impacts earnings (represented by w). Weekly salary for
Scenario 2 Suppose years of schooling, denoted by s, is the only variable in this model that impacts earnings (represented by w). Weekly salary for male and female workers are represented by the following equations: Wm = 400 + 90sm for male earnings and wf = 350 + 80s for female earnings. Suppose in this example that men have 16 years of schooling on average (Sm = 16) and women have 15 (s = 15) years of schooling on average. Question 10 4 pts Refer to Scenario 2. What is the male-female wage differential in the labor market? Question 11 4 pts Refer to Scenario 2. Using the Oaxaca-Blinder decomposition, calculate how much of this wage differential (in dollars) could be due to discrimination
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