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Suppose there are two occupations, nurses and doctors.
Draw hypothetical supply and demand graphs for men and women to both occupations assuming that some of each gender prefers each job. Now, assume that discriminatory actions take place preventing men from becoming doctors. Show the effects of discrimination on your graph.
Who benefits and who loses from this discrimination? Show the effect of discrimination on wages and employment in both occupations and on total output in each. (Hint: have one graph for nurses, and a separate for doctors.)
Wanting higher wages, nurses successfully lobby government to crack down on discrimination practices. If discrimination is eliminated, show the changes that will take place in the labor markets for nurses and doctors. Who benefits and who loses from the ban on discrimination?
Are there circumstances where the government should not prevent discrimination?
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