In s perfectly free and open market economy, the type of employer—government or private should have little or no impact on the earnings differentials between women and men. However. if there is discrimination against one sex. it is unlikely that the degree of discrimination by government and private employers will be the same. Differences in the degree of discrimination would result in earnings differentials associated with the type of employer. Given the nature of government and private employers, it seems most likely that discrimination by private employers would be greater. Thus one would expect that. if women are being discriminated against, government employment would have a positive effect on women’s earnings as compared with their earnings from private employment. The results of a study by Fuchs support this assumption. Fuchs’s results suggest that the earnings of women in an industry composed entirely of government employees would be 14.6 percent greater
A. Both private employers and government employers discriminate, with equal effects on women’s earnings
B. If private employers and government employers discriminate, the discrimination by private employers has a greater effect on women’s earnings
C. Private employers discriminate; it is possible that government employers discriminate
D. Private employers discriminate; government employers do not discriminate
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