Solved: On average men have 14 years of schooling and women have 12, Business Management

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On average men have 14 years of schooling and women have 12

Suppose years of schooling, s, is the only variable that affects earnings. The equations for the weekly salaries of male and female workers are given by:

Wm = 500 + 100s

Wf = 300 + 75s

On average, men have 14 years of schooling and women have 12 years of schooling.

a. What is the average male-female wage differential in the labor market?

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Business Management: On average men have 14 years of schooling and women have 12

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