Question: Given the following table, draw and explain the step demand curve for female labour. TABLE 8.7. DISCRIMINATION COEFFICIENTS AND RESERVATION WAGES TO EMPLOY WOMEN DISCRIMINATION

Given the following table, draw and explain the step demand curve for female labour.

TABLE 8.7. DISCRIMINATION COEFFICIENTS AND RESERVATION WAGES TO EMPLOY WOMEN DISCRIMINATION RESERVATION RESERVATION EMPLOYER COEFFICIENT d WAGE RATIO WAGE R Archie 43 .70 14 Ben .25 80 16 Carl .11 190 18 Dan .00 1.00 20 Ed -.09 1.10 22 Notes: The reservation wage ratio is 1/(1 + d). The hourly wage of men is wm = 20, so the reservation wage to employ women is R = 20/(1 + d)

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