(a) Charging people who who get a 60% wage premium (eg women doing Economics) higher tuition fees (b) Charging people who get less than a 40% premium higher tuition fees (c) Charging everyone higher tuition fees. Evaluate each of these proposals in light of the competitive labour market model (holding labour demand constant). Do you think the proposal is a good idea? Why or why not? What will the effect be on the supply of different types of labour (eg non-graduates, female economists) resulting from each and thus on the wages people receive.

(a) Charging people who who get a 60% wage premium (eg women doing Economics) higher tuition fees (b) Charging people who get less than a 40% premium higher tuition fees (c) Charging everyone higher tuition fees. Evaluate each of these proposals in light of the competitive labour market model (holding labour demand constant). Do you think the proposal is a good idea? Why or why not? What will the effect be on the supply of different types of labour (eg non-graduates, female economists) resulting from each and thus on the wages people receive.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter19: Earnings And Discrimination

Section: Chapter Questions

Problem 8PA

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