Question 3:There are two types of workers in the labor market: male and female. Firms are prejudicedagainst female workers, and the degree of prejudice is indicated by di . Suppose that the marketwage for male workers is WA, and the market wage for female workers is WB . Male workers andfemale workers are perfect substitutes.(a): Show the firms hiring decision and express the degree of prejudice di using wages.
Added by Elena M.
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Let WA be the market wage for male workers and WB be the market wage for female workers. Since male and female workers are perfect substitutes, firms will choose to hire the type of worker that is cheaper. Show more…
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