Discrimination in the labor market The following table lists the name, gender, height, and minimum wage...

Discrimination in the labor market

The following table lists the name, gender, height, and minimum wage 10 people are willing to accept to work as personal assistants at a prestigious law firm.

Name	Gender	Height	Minimum Wage
Name	Gender	(Inches)	(Dollars per week)
Neha	F	66	$309
Alyssa	F	64	$321
Crystal	F	68	$344
Tim	M	70	$367
Brian	M	70	$390
Hilary	F	66	$402
Edison	M	71	$425
Rajiv	M	70	$448
Kevin	M	63	$460
Maria	F	68	$483

The lowest wage that the law firm can pay to hire five personal assistants is

per week.Suppose the head of the law firm has a preference for tall employees because he thinks it will increase revenue, and thus, he imposes the restriction that all personal assistants hired must be at least 67 inches in height. Under this new regulation, the wage rate the law firm must pay to attract five personal assistants rises by

per week.

Expert Solution

In the first case, the lowest wage rate is $309 at which all 10 workers can be hired. However to hire only five of them a wage rate of $390 can be set. At this wage rate, Neha, Alyssa, Crystal, Tim and Brian are willing to work. The lowest wage that the law firm can pay to hire five personal assistants is $390 per week.

Under the new constraint we have six individuals with a height of 67 inches or above. Lowest wage among them is $344 and highest is $483. If we discard Maria then we can hire five workers. Hence the required wage rate is second highest which is $448.

Hence the wage rate is increased by $58 per week. The wage rate the law firm must pay to attract five personal assistants rises by $58 per week.

Crystal	F	68	$344
Maria	F	68	$483
Brian	M	70	$390
Rajiv	M	70	$448
Tim	M	70	$367
Edison	M	71	$425

Rahul Sunny answered 2 years ago

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