Consider the standard set up for thinking about statistical discrimination from last class (groups have same average productivity, but one group has a lower slope on the signal component – call this group women). Neither group has a zero y-intercept. A government issues a minimum wage requirement. Which of the following is true: A. At a low enough minimum wage, employers will hire men and women of any signal type. B. At a low enough minimum wage, employers will hire high signal men and low signal women. C. At a low enough minimum wage, employers will hire women of any signal type and only higher signal men. D. At a high enough minimum wage, employers will hire low signal men and high signal women.
Consider the standard set up for thinking about statistical discrimination from last class (groups have same average productivity, but one group has a lower slope on the signal component – call this group women). Neither group has a zero y-intercept. A government issues a minimum wage requirement. Which of the following is true:
A. At a low enough minimum wage, employers will hire men and women of any signal type.
B. At a low enough minimum wage, employers will hire high signal men and low signal women.
C. At a low enough minimum wage, employers will hire women of any signal type and only higher signal men.
D. At a high enough minimum wage, employers will hire low signal men and high signal women.
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