Question: An Australian study found that, if other factors are constant (education, experience, etc.), taller people receive higher wages for the same work. The study reported
An Australian study found that, if other factors are constant (education, experience, etc.), taller people receive higher wages for the same work. The study reported a “height premium” for men of 3% of the hourly wage for a 10 cm increase in height; for women the height premium reported was 2%. We assume that hourly wages are a linear function of height. The slope is given by the height premium at the average hourly wage for that gender, AU$29.40 for men and AU$24.78 for women.
(a) The average hourly wage for a 178 cm Australian man is AU$29.40. Express the average hourly wage of an Australian man as a function of his height, x cm.
(b) The average hourly wage for a 164 cm Australian woman is AU$24.78. Express the average hourly wage of an Australian woman as a function of her height, y cm.
(c) What is the difference in average hourly wages between men and women of height 178 cm?
(d) Is there a height for which men and women are predicted to have the same wage? If so, what is it?
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a The average hourly wage for men is AU2940 and the height premium is 3 so Since the wage is AU2940 ... View full answer
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