Question

8. Suppose a researcher has data on the wages of women in 1990. Using these data they calculate the average wage of women in various age groups. These are given in the table below. Age 20 30 Average Wage $10.01 $9.89 $9.23 $8.56 $7.87 40 50 60 From this, the researcher concludes that women's wages decline as they grow older. Using what we learned about cohort bias in the calculation of immigrant performance in the United States, comment on this researcher's conclusion.

Answer 1

The research fairly demonstrated that cohort represented biasedness towards younger women and with increasing age groups the average pay declined which might represent inefficiency of growing age and strong correlation of higher age and lower performance which might have constituted for lower average payout.

Rising age is perceived with lower productivity and is considered to have outdated skills compared to new age workforce immigrants and hence competition rises causing lower wages for high age workers.