Calculate wage differential, Econometrics

Suppose years of schooling, s, is the only variable that affects earnings. The equations for the weekly salaries of male and female workers are given by wm = 500 + 100s and wf = 300 + 75s.

On average, men have 14 years of schooling and women have 12 years of schooling.

(a)  What is the male-female wage differential in the labour market?

(b)  Calculate how much of this wage differential is due to discrimination and how much is due to difference in skills.



Posted Date: 2/28/2013 2:20:06 AM | Location : United States

Related Discussions:- Calculate wage differential, Assignment Help, Ask Question on Calculate wage differential, Get Answer, Expert's Help, Calculate wage differential Discussions

Write discussion on Calculate wage differential
Your posts are moderated
Related Questions
Your firm will produce widgets for the next 10 years (starting at t=1). Annual revenue from selling widgets is $20,000. Production requires an initial outlay (at t=0) for machin

Choose a share from a market such as LSE, NYSE, NASDAQ, etc. [Data sources could be Datastream, Google Finance or others]. Prepare a report which involves the following aspects:

a) Explain what is calculated by a correlation coefficient. b) Why do economists commonly find regression a more useful tool than correlation? c) In a sample of 102 men the corre

what is econometrics

A city government wants to raise $3 million by issuing bonds. By ballot proposition, the bond's coupon interest rate was set at 8% per year with semiannual payments. However, marke

In June, Leslie wins a cash prize of $2,000. She plans to use this money to pay her tuition bill in September. Leslie puts this money in a savings a savings account because her mai

The tab-delimited text file C359A1S1Q2.txt contains daily prices for the South Korean Stock Exchange Index (KOSPI) from 4/7/2006 (observation 1) to 11/6/2010 (observation 977). Alt

Problem 1. Consider the demand function Q(p 1 , p 2 , y) = p 1 -2 p 2 y 3 , where Q is the demand for good 1, p 1 is the price of good 1, p 2 is the price of good 2 and y is t

what model should i use for economic services and how to run spss for the same?