Suppose years of schooling, S. is the only variable that affects earnings. The following equations are weekly
salaries of men and females wm=500 + 100S WF= 300 + 75S On average men have 14 yrs of schooling and women have 12 What is the male/female wage differential in the labor market? Using oaxaca decompisition, calculate how much of the wage differential is due to discrimination What is an alternative oaxaca decomposition that would lead to a different measure of discrimination? What measure is better?
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