What share of men and women prefer jobs in public schools

Reference no: EM132199022

Question: It is 1940 and women face significant discrimination in the private sector labor market. Here are earnings functions for men and women in the private sector as a function of efficiency units (e), which measure true worker productivity

YM = 400 + 20e

YW = 300 + 10e

Public schools offer a constant salary for all workers:

YM = YW = 500

Assume the labor market includes 100 men and 100 women and that the distribution of efficiency units is uniform and the same within genders: person 1 has one efficiency unit, person 2 has two efficiency units, person 3 has three efficiency units etc. What share of men and women would prefer jobs in public schools?

Assume everyone who would prefer a job in education applies and that the education sector will hire 10 workers from among the applicants. It can perfectly observe efficiency units. The education sector would like to hire the most productive workers it can find what is the average number of efficiency units among the 10 workers hired?

Now fast forward to the year 2010. Discrimination in the private labor market against women has been greatly reduced and their new earnings function is:

YW = 380 + 20e

The earnings function for men and the constant salary in public education are unchanged. The education sector still wants to hire 10 workers. How does the average productivity of education-sector workers change between 1940 and 2010 as a result of improved outside labor market opportunities for women?

Reference no: EM132199022

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