Taste-based Discrimination Theory

Consider that the one child policy led to more sex selective abortions and more men vs women. Using the models we learned in class, what might the one child policy do to gender wage gaps in China if employers in China discriminate on the basis of taste against women?

• The supply curve for women in the labor market will shift right/down, so the gender wage gap will be larger.
• The supply curve for women in the labor market will shift left/up, so the gender wage gap will be larger.
• The supply curve for women in the labor market will shift left/up, so the gender wage gap will be smaller.
• The demand curve for women in the labor market will shift left/up, so the gender wage gap will be larger.