When Alan Greenspan (who would later become chairman of the Federal Reserve) ran

Question

When Alan Greenspan (who would later become chairman of the Federal Reserve) ran an economic consulting firm in the 1960s, he primarily hired female economists. He once told the New York Times, " I always valued men and women equally, and I found that because others did not, good women economists were cheaper than men." Is Greenspan's behavior profit-maximizing? Is it admirable or differential between men and women? Why might other economic consulting firms at the time not have followed Greenspan's business strategy?

Explanation / Answer

Greenspan's behaviour is profit maximizing if we will assume there is no difference in productivity and skill. As the cost is lower in case of female economist. Although it is not admirable to differentiate between men and women. This is not women empowerment, however this is an initative to make higher profits in disguise of equality. Equality means equal opportunity for all.

There is a lack of female economist and may be other consulting firms have different criterias to hire its employees.

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