Suppose that a female worker has considerable child-raising duties at home which reduce her labor market productivity and pay by 10% compared to her male counterpart.Also suppose that their observable productivity characteristics are equal.Then the standard procedure will estimate that wage discrimination reduces her wages by ________,while her actual reduction in wages due to labor market discrimination is ________.
A) 10%; 10%
B) 10%; 0%
C) 0%; 10%
D) 0%; 0%
Correct Answer:
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