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Gender discrimination in the labor market The following table lists the name, ge

ID: 1216457 • Letter: G

Question

Gender discrimination in the labor market The following table lists the name, gender, height, and reservation wage of 10 people who are willing to work as personal assistants at a prestigious law firm. The lowest wage that the law firm can pay to hire five personal assistants is per week. Suppose the head of the law firm has a preference for tall employees because he thinks it will increase revenue, and thus, he imposes the restriction that all personal assistants hired must be at least 67 inches in height. Under this new regulation, the wage rate the law firm must pay to attract five personal assistants rises by per week.

Explanation / Answer

Ans 1. The lowest wage of hiring 5 personal assistants = 306 + 328 + 350 + 361 + 383 = $1,728 per week .

Ans 2. Atleast 67 inches in height, then firm would hire, Becky, Raphael, Alex, Clancy and Manuel

So, the total wage = 350 + 361 + 383 + 427+449 = $1,970 per week.