Question

6. Suppose there are two types of restaurant workers — high-skill chefs and low-skill servers. There are 1000 males and 1000 females in the labour force, and each group has an identical distribution between high- skill and low-skill workers. The two diagrams below show an initial outcome in each labour market. Assume there is no discrimination based on gender. a) As shown in the figures, the wage paid to chefs is higher than the wage paid to servers. What explains this wage differential? b) Do men earn more or less, on average, than women? Explain. 6. Now suppose that employers begin to discriminate against female workers and hire only males as chefs. Show in the diagram what happens in each labour market. c) In the situation in part (c), what happens to the wage differential between chefs and servers? What happens to the wage differential between males and females? d) In the absence of any government intervention, explain the forces that we expect might eliminate this discrimination over time.

Answer 1

Answer

6(a) . As shown in the figue we can see that the equiliobrium wage of the chef is higher than the server for same quantity .This is because , the wage is differentiated on the basis of skill set , Both the chef and the labour are worker but the difference is in thier qualification .The chef is more qualified and provide the restaurant the main service for which the restaurant meant for custoemr .On the other hand the server has no qualification or skill set which can make to be paid high .So this is the basic differential in the wage

6(b)

Yes , men earn more than women in general because women has different thing involved like responsibility of children ,family ,relationship etc .While men start working form thier very young while female (most of time ) work when they need .So in average the mean earn more .