Assignment Task: One theory of discrimination posits that firms or individuals who choose to engage in discrimination incur economic costs for having done so. In other words, in a competitive market, firms or individuals are obligated to pay a penalty for their discrimination. This is often referred to as having a "taste for discrimination" and was codified as a theory by Gary Becker in the 1950s. Some economists have argued that this penalty largely eliminates discrimination in the marketplace and makes unnecessary any sort of government intervention to prevent discrimination.
Summarize how the gender pay gap that is often reported in the popular media is currently calculated. What issues exist when the gap is calculated in such a way? Do you believe the US government should intervene to prevent discrimination in the marketplace?
In drafting your arguments, keep in mind that under the "taste for discrimination" framework and absent any legislation to the contrary, discrimination becomes simply another "good" for which firms or individuals can pay. Also, please note there is no right or wrong answer, provided that any answer you provide is well-argued. Credible economists have, in fact, supported both sides of this issue.