Q. One could argue that a long commute to work is an undesirable characteristic of any job. If most people live in the suburbs, Illustrate what would the theory of compensating wage differentials predict about the relative wages of jobs in the suburbs versus wages of jobs located downtown? Explain.

Assume that on average, men also women have different preferences regarding commuting time. Assume, for example, that while both women also men prefer a short commute, the average woman prefers-more than the average man-a short commute. Utilize a hedonic model to examine pay for the average man versus pay for the average woman, all else equal.