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.
c. 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.
d. 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?
e. In the absence of any government intervention, explain
the forces that we expect might eliminate this
discrimination over time.
