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Posted by / 15-Jul-2020 15:08

Speed dating for mentally challenged

Wage differentials occur when the job opportunities or demand for the female-dominated sector is less than the supply of women.According to the evidence, in general female dominated jobs pay less than male dominated jobs.However, if the employer invests a lot on her, the chance that she will stay is higher.

Therefore, the customers are willing to pay higher prices for a good or a service in order not to be served by women.Assume the equilibrium wages in job F is higher than that of the M jobs.Intuitively, the workers in the less paying job will transfer to the other sector.However, the data points out the jobs associated with women suffer from lower pay.Statistical discrimination economics Edmund Phelps [] introduced the assumption of uncertainty in hiring decisions.

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There are three types of discrimination, namely: Thus, the non-pecuniary cost brings an additional cost of discrimination in dollar terms; the full cost of employing women is the wage paid plus this additional cost of discrimination.