Suppose that labor market experience is the only characteristic that influences wages. Suppose also that males and

Question:

Suppose that labor market experience is the only characteristic that influences wages. Suppose also that males and females have different levels of experience and have different "wage functions" (equations that show relationship between wages and experience). The male and female wage functions are given by the following:

Males Wage = 10 +.5 Experience Females Wage = 9+.25 Experience

Based on the given information, if men and women had the same labor market experience,

a. Men's and women's pay would be the same.

b. Men's pay would be higher than women's pay.

c. Women's pay would be higher than men's pay.

d. Firms would treat men and women the same.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Question Posted: