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A large employer gives each new hire an aptitude test, which is scored from 1 to 20. Let T be a worker's score on the test. The rm then pays the new...
A large employer gives each new hire an aptitude test, which is scored from 1 to 20. Let T be a worker's score on the test. The rm then pays the new worker a wage of w = 0.6T + 0.4T where T is the average test score for the worker's gender, which is 16 for women and 12 for men.
a) If a man and a woman both score a 10 on the exam, how much is each worker paid?
b) Which worker has a higher expected productivity?Explain
c) Which worker has a higher true productivity?
d) Define statistical discrimination.