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Draw simple labor supply and demand graphs for the occupations of surgeons and nurses to show the labor market in each profession. Assume that some workers prefer to do surgeryfor a living, and some prefer to work as nurses, but that all will change occupations if the wages are high enough.
Now assume that men face discrimination that prevents them from becoming surgeons; show and explain the effect of this discrimination on wages and labor supply in both occupations graphically and in your own words.
Show the reduction in output from discrimination. Since total output would increase if we ended discrimination, why has it been so hard to do so?
Review John Miller, “‘Equal Pay’ Is Not So Equal,” Real World Micro, 8.3. Are women paid less than men? In what ways is the gender pay gap a statistical artifact, and in what ways is it real?
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