I heard about a lot of companies who hire women specifically so they can pay them less.
That make me wonder, in a perfect world where there is no pay gap, what would be the effect on woman employment rate.
Would companies hire equal percentage of workers from both genders or would something else happen?
Orthodox economic thought suggests that in the labor market, whenever wages increase without anything changing in the underlying supply and demand, employment would fall… I don’t know about you guys, but I’ve never been big on religion so I suggest taking that with a grain of salt.
Regardless of your conclusions and what you make of the orthodox argument, it is important to consider the total cost and aggregate risk of a company of hiring a woman vs a man or other genders. If, for example, regulation establishes that women have the right to a different amount of postnatal days off than men, that would be risks that companies would take into account at the moment of deciding who to hire.
Don’t a number of European countries (Germany, France, etc.) Require the same number of parental leave days between sexes?
That’s why I started with “if”. It’s not the case here in Chile.