Welcome to Econ 325 Economics of Gender

Week 14Beginning April 30

Monday, April 30Retune ICA 6 on the CNN Article1) What has the study found

regarding the size of the wage gap between male and female workers?

2) List at least four factors that have contributed toward the wage gap, according to this study.

Return ICA 7

• Was graded based on how much you were able to increase your individual welfare, given your constraints.

Let’s look at the market

Jeremy Bryan A. Brian B. Chris Josh Single

Tian 15 16 14 17 12 5

Heidi 9 15 13 18 16 3

Emily 8 17 12 10 15 4

Single 3 5 4 7 6

Who did what?

1. Jeremy went straight for his best choice

• Total family benefits = 15• Jeremy’s share = 6• When he found out that he was

going to lose his wife, he offered his wife one more unit of benefit and drove the competition out .

Who did what?

2. Heidi went straight for her best choice Chris

• Total family benefits= 18• Heidi’s share= 9• Later, she was offered 9.5 benefits

by Josh and she took it

Who did what?

3. Chris went for his best choice Heidi• Total family benefits= 18• Chris’s share= 9• Later, he lost Heidi to Josh for 0.5 benefit• He could have convinced Heidi to stay if he

had offered her 10 benefits and kept 8 benefits for himself

• Instead, he went back to being single and having 7 benefits.

Who did what?

4. Josh stayed single the first round as he was nobody’s first choice• But he managed to marry Heidi in

round 2• Family benefits = 16• Josh’s share = 6.5 (better than

reaming single)

Who did what?

5. Brian B. stayed single the first round• Other rounds?• Did not have the energy to approach

and negotiate something with women.

• He could have offered women 0.5 benefits more than they had and end up getting married

Who did what?

6. Emily went for her best choice at first• Family benefits = 17• Emily’s share = 8• Stayed married to the same man but

the distribution of total benefits changed.

• Why?

Who did what?

7. Bryan A. went for his best choice at first• Family benefits = 17• Emily’s share = 9• Stayed married to the same woman

but the distribution of total benefits changed.

• Why?

Paper presentations• About 10 minutes• 2-3 presentations Wednesday • The rest Friday• Before your presentation you will need to

meet with me• Available times to meet1. Tomorrow 6:00 PM2. Tomorrow 6:30 PM3. Tomorrow 7:00 PM4. Wednesday 3:00 PM and after5. Thursday 3:45 and 4:15 PM

Another Marriage Market(Total benefit produced by potential marriage and remaining single)

Donald Bill Single

Rosie 20 10 5

Hilary 10 5 1

Single 5 1

Superior/Inferior Partners

• Superior male (female) partners can produce more total benefits than male (female) partners no matter who they marry.

• Who is a superior male (female) partner?

Assortative Mating

• Tendency to marry someone with roughly similar benefits to offer.

• Who is going to choose whom to marry? Why?

Suggest a division of benefits

• Is the marriage stable?• Why or why not?

Equal/Unequal Sharing

Donald Bill

Rosie 10 (R),10

Hilary 3 (H), 2

Ceteris paribus, the more equal the sharing scheme the more stable the marriage

Bonus ICA

• Wednesday• On Chapter 8

Wednesday, May 2

• Bonus ICA• In your opinion, what is the main

advantage of non-standard jobs for employees? What is the Main advantage of these jobs for employers? Why?

Class Presentations

• Bryan A. • Heidi

Course Evaluation• Jacqueline Khorassani• Dept: ECON• Crs# 325• Sect: 01• Code • Sem: SP• Year: 07• Don’t forget the optional questions

Friday, May 4

• Thanks for meeting 1 hour early• Exam 3

• Monday at 3 PM• Covers

• PP 218-288• Notes• Assignments

Presentations

• Chris• Josh• Brian B,• Emily