Equilibrium discrimination and crowding. Suppose there are two occupations, chefs and truck drivers.
Draw hypothetical supply and demand graphs for men and women to both occupations assuming that some of each gender prefers each job. Now, assume that discriminatory actions take place in the restaurant business preventing men from becoming chefs. Show the effects of discrimination on your graph.
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. (Hint: have one graph for chefs, and a separate for truck drivers)
Angry about the discrimination, aspiring male chefs’ successfully lobby Washington to crack down on discrimination practices in the restaurant business. If discrimination is eliminated through this process, show the changes that will take place in the labor markets for chefs and truck drivers. Who benefits and who loses from the ban on discrimination?