Derive the Oaxaca measure of discrimination.

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Chapter 9, Problem 7RQ

To determine

Derive the Oaxaca measure of discrimination.

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Derive the Oaxaca measure of discrimination. Does this statistic truly measure the impact of discrimination on the relative wage of the affected groups?

What is a factor where a portion of a wage gap may not be the result of discrimination? Explain why this factor is not a discriminatory practice.

The U.S. Bureau of the Census reported that, on average, white men earn $50, 945, whereas white women earn $31,008. Economic discrimination explains at least some of this wage gap, but economists think that there are other factors that also contibute to wage gaps. Which factor is not an explanation offered by economists for these types of wage gaps? Various groups in the population graduate from college at varying rates. Differences in earnings can be explained in part by differences in educational attainment. Men and women take different types of jobs. Men are more likely to prioritze jobs with higher wages, and women are more likely to prioritize jobs with other desirable characteristics. On average, men and women have different amounts of experience in their jobs. Ceteris paribus, men are less likely to temporarily leave the workforce and, therefore, have more experience than women. There are innate differences between men and women that make men more productive than women. Because…