Question

Suppose that: (i) the construction industry is perfectly competitive; (ii) male and female construction workers are equally productive; and (iii) all male construction workers are prejudiced against female construction workers. In the equilibrium in the labor market for construction workers, one would expect:

Group of answer choices

Integrated work crews, and no gender wage gap disadvantaging women

Integrated work crews, but a gender wage gap disadvantaging women

Work crews that are segregated by sex, but no gender wage gap

Work crews that are segregated by sex, and a gender wage gap disadvantaging women

Answer 1

Since it is assumed that the construction isdustry is perfectly competitive and male and female workers are equally productive. So this two assumptions leads to the conclusion that the wage rate for the male and female workers must be same.

It is also assumed that all male construction workers are prejudiced against female construction workers, so this assumption tells us that there will be lack of coordination between the male and female workers.

So combining all three assumptions we can conclude that the answer will be option three i.e. work crews that are segregated by sex, but no gender wage gap.