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Equilibrium discrimination and crowding. Suppose there are two occupations, plumbers and day-care teachers.

a) Draw hypothetical supply and demand graphs for men and women to both occupations assuming that some of each gender prefers each job. Show the effect of discrimination that prevents men from becoming plumbers.

b) Who benefits and who loses from this discrimination? Show the effect of discrimination on wages and employment in both occupations and on total output in each.

c) The day-care teachers have formed a union and gained higher wages. How can they make these wages stick? What will happen to employment in day care centers?? If they make their jobs more desirable, how can they address the greater number of applicants for work?

d) Show the effect on wages, employment, and output of open immigration from poorer countries if there are no restrictions on employment in either sector. Show the effect if the plumbers prevent immigrants (both male and female) from having access to the trade.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M947221

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