Question

With reference to the hedonic wage theory, explain why women earn less than men [clearly discuss all the underlying assumptions for the job-matching process]

Describe how the economic perspective can be applied to analysis of labour markets.                                                

Answer 1

Hedonic wage theory prescribes the relation between wage and job characteristics. risk taking capability of a job seeker and job according to their preference. so, in this case, women are soft and a week in terms of their physical appearance so they generally not prefer to take any kind of riskier job so their preference is generally less risky and easy to manage with some other priority, at the same time men are more open to riskier job to justify their capability and sometimes to prove their superiority. So they prefer a comparatively riskier job than women. But in this wage theory, this is only applicable to the physical labor practice, in case of metal or the higher post the post will decide the value or the wage of the worker, not their gender. so in general official activities, there is no difference between men and women in terms of wages. for example, a chartered accountant salary is fixed by a company, the accountant can be a man or women there is no difference.

The labor market, wage , employment, and unemployn]ment are always attractive as well as focused factors for an economy. In Neoclassical economists view the labor market is as similar to other markets. here the demand and supply jointly determine the price (in this case the wage rate) and quantity (in this case the number of people employed). So it has its own impact on economy and one of the major determinat of growth.