. Assume men and women are perfect substitutes. Across employers there is a distribution of the discrimination coefficient against women of -0.2 to 0.5. In a graph with female employment on the x-axis and the gender wage ratio on the y-axis answer the following. a. What would be the "y-intercept" of the Demand curve? b. Assume female labor supply is perfectly inelastic. Show on this graph equilibrium where women and men are paid equally. c. A bizarre disease starts leading to more women being born then men. How will this eventually affect the gender wage gap if there are no simultaneous demand
. Assume men and women are perfect substitutes. Across employers there is a distribution of the discrimination coefficient against women of -0.2 to 0.5. In a graph with female employment on the x-axis and the gender wage ratio on the y-axis answer the following. a. What would be the "y-intercept" of the Demand curve? b. Assume female labor supply is perfectly inelastic. Show on this graph equilibrium where women and men are paid equally. c. A bizarre disease starts leading to more women being born then men. How will this eventually affect the gender wage gap if there are no simultaneous demand
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter26: Earnings, Productivity, And The Job Market
Section: Chapter Questions
Problem 4CQ
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Transcribed Image Text:Economics
4. Assume men and women are perfect substitutes. Across employers there is a distribution
of the discrimination coefficient against women of -0.2 to 0.5. In a graph with female
employment on the x-axis and the gender wage ratio on the y-axis answer the following.
a. What would be the "y-intercept" of the Demand curve?
b. Assume female labor supply is perfectly inelastic. Show on this graph
equilibrium where women and men are paid equally.
c. A bizarre disease starts leading to more women being born then men. How will
this eventually affect the gender wage gap if there are no simultaneous demand
shocks?
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