Assume that workers are of the same race and either male or female.Male and female workers possess the same stock of human capital and hence they are equally productive.The wage rate is $10 per hour for male workers and $9 per hour for female workers.
-Refer to the information above.If output and labour markets are competitive,one could predict that,over time,

Question

Quizplus · Accepted Answer

In competitive markets, firms will seek to minimize costs. Since male and female workers are equally productive, firms will hire more female workers at the lower wage rate, increasing demand for female workers and driving their wage rate up to $10 per hour.

Assume That Workers Are of the Same Race and Either