As we have seen, because of either discrimination or differing preferences, certain jobs are filled primarily by

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As we have seen, because of either discrimination or differing preferences, certain jobs are filled primarily by men, and other jobs are filled primarily by women. On average, the “men’s jobs” have higher wages than the “women’s jobs.” Some commentators have argued that many “men’s jobs” are more highly paid than “women’s jobs,” despite the jobs being comparable in terms of the education and skills required and the working conditions involved. These commentators have argued that the earnings gap between men and women could be closed at least partially if the government required employers to pay the same wages for jobs that have comparable worth. Many economists are skeptical of these proposals because they believe allowing markets to determine wages results in a more efficient outcome. Suppose that electricians are currently being paid a market equilibrium wage of $800 per week, and dental assistants are being paid a market equilibrium wage of $500 per week. Comparable-worth legislation is passed, and a study finds that an electrician and a dental assistant have comparable jobs, so employers will now be required to pay workers in both jobs $650 per week. Analyze the effects of this requirement on the market for electricians and on the market for dental assistants. Be sure to use demand and supply graphs.

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Microeconomics

ISBN: 9780135952955

8th Edition

Authors: Glenn Hubbard, Anthony Patrick O Brien

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