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Male-female wage differential in the labor market

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Reference no: EM131434080

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

Wf = 300 + 75s

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

a. What is the average male-female wage differential in the labor market?

Reference no: EM131434080

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