A large employer gives each new hire an aptitude test, which is scored from 1 to 20. Let T be a worker’s score on the test. The firm then pays the new worker a wage of W0.5T + 0.5G where G is the average score for the worker’s gender: 16 for women and 12 for men. What is the wage for a male who scores 16 on the test? Now, suppose that the employer still uses the same formula, but that the wages paid to male workers and to female workers are identical. In this case, is anyone facing discrimination? Explain.

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Wage Calculation The wage formula is given by W 05T 05G where G is the average score for the workers ... View the full answer