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Within the model of statistical discrimination, consider the case where the female historical T-score is equal to 50 and that for males is equal to
Within the model of statistical discrimination, consider the case where the female historical T-score is equal to 50 and that for males is equal to 40. Furthermore, assume that the weight that the employer assigns to the CVs of females is equal to 0.8, whereas the weight assigned to the CVs of males is equal to 0.4.
- What is the CV-score at which males and females are offered the same wage?
- For a given constant CV-score of 50, what is the gender gap in the resulting wage offer?
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