Answered: Discrimination in the labour market The…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Discrimination in the labour market

The following table lists the name, height, and minimum wage 10 people are willing to accept to work as sales clerks at a high-end clothing store.

Name	Height	Minimum Wage
(Centimetres)	(Dollars per week)
Eileen	170	$301
Amy	167	$325
Deborah	170	$349
Van	181	$362
Carlos	179	$386
Janet	168	$410
Felix	175	$423
Raphael	176	$447
Larry	168	$460
Megan	176	$484

The lowest wage that the clothing store can pay to hire five sales clerks is $ per week.

Suppose the head of the clothing store has a preference for tall employees because he thinks it will increase revenue, and thus, he imposes the restriction that all sales clerks hired must be at least 172 centimetres in height. Under this new regulation, the wage rate the clothing store must pay to attract five sales clerks rises by $ per week.

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