Reference no: EM133066949

Assume that, on average, men and women have different preferences regarding the work environment. Suppose, for example, that while both women and men prefer being around other people to working solitary, the average woman prefers-more than the average man-working collaboratively and being inwhat is usually called a "people" job. Further suppose that different firms have different costs of providing these work conditions: some jobs, like real-estate sales, are naturally of this type, while others,such as factory work, are f a more solitary nature. Use a hedonic model to examine pay for the average man versus pay for the average woman under thesecircumstances, all else equal. Does the model have anything to say about whether men are any better off (have higher utility) than women? Explain.