Question

2. After controlling for age and education, the average woman earns about $0.83 for every $1.00 earned by the average man in the United States. After controlling for occupation to control for compensating differentials (i.e., maybe men accept riskier or more stressful jobs than women, and therefore are paid more), the average woman earns $0.92 for every $1.00 earned by the average man. An analyst concludes from this that occupational choices reduce the wage gap 9 cents, and discrimination explains the remaining 8 cents.

a) Explain why discrimination may account for more than 8 cents of the 17 cent differential (and occupational choices may account for less than 9 cents of the differential).

b) Explain why discrimination may account for less than 8 cents of the 17 cent differential.

Answer 1

i hope it helps..

If you have any doubts please comment and please don't dislike.

PLEASE GIVE ME A LIKE. ITS VERY IMPORTANT FOR ME