Question: Question AA After controlling for age and education, it is found that the average woman earns $0.80 for every $1.00 earned by the average man.

 Question AA After controlling for age and education, it is found

Question AA After controlling for age and education, it is found that the average woman earns $0.80 for every $1.00 earned by the average man. After controlling for occupation to account for compensating differentials (i.e.. maybe men accept riskier or more stressful jobs than women, and therefore are paid more), the average woman earns $0.92 for every $1.00 earned by the average man. The conclusion is made that occupational choice reduces the wage gap by 12 cents and discrimination is left to explain the remaining 8 cents. Explain why discrimination may explain more than 8 cents of the 20cent differential (and occupational choice may explain less than 12 cents of the differential}

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!