Reconcile these facts with the theory of human capital

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On the Job Training. Three basic facts about men and women in the labor market are these: 1. As a group, women now get just as much schooling as men do (actually, a little more). 2. Upon graduating from college, women receive salary offers that are the same as men’s offers, on average. 3. As they age, men’s average wages and women’s average wages diverge, with women lagging behind men, even when they have the same amount of education. (a) Reconcile these facts with the theory of human capital. (b) Under one standard theory of labor market discrimination, employer discrimination, employers are willing to pay a fixed premium to hire members of a preferred group instead of members of a non-preferred group. What pattern of facts should you observe if women were discriminated against in this way? (c) Under another theory of discrimination, families are reluctant to invest in the education of their daughters. What pattern of facts should you observe if women were discriminated against in this way?

Reference no: EM13838187

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