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In other words, occupational segregation is an outcome of group-typing of employment between different groups but consumer discrimination does not cause wage differentials.
Thus, customer discrimination theory fails to explain the combination of employment segregation and the wage differentials.
Assume the equilibrium wages in job F is higher than that of the M jobs.
Intuitively, the workers in the less paying job will transfer to the other sector.
However, the data points out the jobs associated with women suffer from lower pay.
Statistical discrimination economics Edmund Phelps  introduced the assumption of uncertainty in hiring decisions.
by texting her “a meme of a mentally handicapped girl with rainbows. Neoclassical explanations[ edit ] Neoclassical labor economists explain the existence and persistence of discrimination based on tastes for discrimination and statistical discrimination theories.The non-neoclassical insight that is not part of the statistical discrimination sheds light onto uncertainty.If a woman is given less firm-specific training and is assigned to lower-paid jobs where the cost of her resigning is low based on the general view of women, then this woman is more likely to quit her job, fulfilling the expectations, thus to reinforce group averages held by employers.However, if the employer invests a lot on her, the chance that she will stay is higher.
The reasons for segregation may be socialization, individual decisions, or labor market discrimination.The pay is low because of the high number of women who choose female dominated jobs or they do not have other opportunities.