5. Discrimination in the labor market The following table lists the name, gender, height, and minimum wage 10 people are willing to accept to work as sales clerks at a high-end clothing store. Name Eileen Valerie Caroline Shen Antonio Frances Dmitri Nick Jake Latasha Gender F F F M M F M M M F Height (Inches) 66 66 68 70 70 66 71 70 63 68 Minimum Wage (Dollars per week) $301 $325 $349 $362 $386 $410 $423 $447 $460 $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 67 inches 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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Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter14: Labor Markets And Income
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5. Discrimination in the labor market
The following table lists the name, gender, height, and minimum wage 10 people are willing to accept to work as sales clerks at a high-end clothing
store.
Name Gender
Eileen
F
Valerie
Caroline
Shen
Antonio
Frances
Dmitri
Nick
Jake
Latasha
F
F
M
M
F
M
M
M
F
Height
(Inches)
66
66
68
70
70
66
71
70
63
68
Minimum Wage
(Dollars per week)
$301
$325
$349
$362
$386
$410
$423
$447
$460
$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 67 inches in height. Under this new regulation, the wage rate the clothing store must pay to
attract five sales clerks rises by $
per week.
Transcribed Image Text:5. Discrimination in the labor market The following table lists the name, gender, height, and minimum wage 10 people are willing to accept to work as sales clerks at a high-end clothing store. Name Gender Eileen F Valerie Caroline Shen Antonio Frances Dmitri Nick Jake Latasha F F M M F M M M F Height (Inches) 66 66 68 70 70 66 71 70 63 68 Minimum Wage (Dollars per week) $301 $325 $349 $362 $386 $410 $423 $447 $460 $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 67 inches 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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