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Suppose years of schooling .9 is the only variable that affects earnings. On average, assume that men have 14 years of schooling and women have
Suppose years of schooling .9 is the only variable that affects earnings. On average, assume that men have 14 years of schooling and women have 12 years of schooling. The equations for weekly salaries of male and female workers are given by mm = 500 + 1003 mm = 300 + 753 2a. What is the malefemale wage differential in the labor market? 2b. Use the Oaxaca-Blinder decomposition to calculate how much of this wage diiferential is due to labor market discrimination and how much isn't. 2c. List 3 other variables one might use in this style of regression and what each variable would capture
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