Question

As applied to gender discrimination, the crowding model of occupational segregation: Select one: a. helps explain why women earn more than men. b. predicts that men's wages would fall and women's wages would rise if occupational segregation was eliminated. c. predicts that domestic output would decline if occupational segregation was ended. d. predicts that competition will eventually totally end discrimination.

Answer 1

The crowding model of occupational segregation suggests that eliminating gender discrimination in the labor market would result in men's wages falling and women's wages rising, which corresponds with option b of the provided choices.

Step-by-step explanation:

The crowding model of occupational segregation is used to understand the economic implications of gender discrimination in the labor market. One of its predictions is that, if occupational segregation by gender were eliminated, the equilibrium in the labor market would shift. Specifically, option b is correct as the model predicts that eliminating occupational segregation would see men's wages fall and women's wages rise due to changes in labor demand and supply.

This relates to the principle that discrimination, whether based on taste-based or statistical reasons, causes the marginal revenue product (MRP) of discriminated groups such as women to be perceived as lower, resulting in fewer employment opportunities and lower wages compared to non-discriminated groups.

It's critical to understand that, while the crowding model does explain some aspects of gender wage disparities, economist William A. Darity Jr. has argued that market competition alone is unlikely to end discrimination in the labor market.