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The after-school tutoring industry is competitive, and so is the labor market for after-school tutors. Suppose male and female tutors have equal experience and skill.
The after-school tutoring industry is competitive, and so is the labor market for after-school tutors. Suppose male and female tutors have equal experience and skill. Currently, some tutoring centers are biased and will only hire male tutors, whereas unbiased tutoring centers desire to hire the cheapest tutors and do not care about their genders. As a result, the equilibrium wage for male tutors is higher than that of female tutors. Refer to Scenario 20-6. If some families strongly prefer their children to be tutored by male tutors, then a. biased tutoring centers can charge more for tutoring to offset the higher cost of hiring only male tutors. b. all biased tutoring centers will make a profit in the short run, but will go out of business in the long run. c. all unbiased tutoring centers will go out of business in the long run. d. the difference in male and female tutor wages will eventually disappear
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