Gender pay gap is the wage differential between men and women due to bias by employers
who favour men over women due as they believe women can't produce or work at the same
rate as men, this happens despite men and
women having the same MRP. Employers are
irrational and have a higher demand for labour
of men than women because they believe that
men have a higher MRP than women. MRP is
when the firm makes additional revenue for
every extra unit of labour they hire. This means
that the wage for men will be higher than the
wage for women. This can be shown on the
diagram as the wage for women is at W and the
quantity is Q whereas for men the wage is at
W1 and quantity is at W1 - Q1. this shows the
gender pay gap as the equilibrium for women
(E) is lower than the equilibrium for men (E1). This shows that the wage differential between
men and women is between W1 and W, showing a pay gap in the market.
who favour men over women due as they believe women can't produce or work at the same
rate as men, this happens despite men and
women having the same MRP. Employers are
irrational and have a higher demand for labour
of men than women because they believe that
men have a higher MRP than women. MRP is
when the firm makes additional revenue for
every extra unit of labour they hire. This means
that the wage for men will be higher than the
wage for women. This can be shown on the
diagram as the wage for women is at W and the
quantity is Q whereas for men the wage is at
W1 and quantity is at W1 - Q1. this shows the
gender pay gap as the equilibrium for women
(E) is lower than the equilibrium for men (E1). This shows that the wage differential between
men and women is between W1 and W, showing a pay gap in the market.
