Consider a labor market for men and women with two types of workers in each group, high ability (H types), and low ability (L types). One-half of the population is high-type workers and one-half is low-type workers. Employers can only view signals of productivity, not true productivity. The productivity of a high-type person is 200 and the productivity of a low-type person is 100. Suppose college costs 10 for high-types and 80 for low-types. Then, (write either "high" or "low" without the quotes) types go to college. High-types have overall utility equal to ____ and low-types have utility equal to ____.

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In this scenario both the high and low types would ... View the full answer