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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.
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Given for a closed economy: C = $20 + 0.50Y D I = $40 G = $10 Y D = Y- T 0 T 0 = $5 Determine: (a) the equilibrium
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