Today in Ontario, employers who have a prejudice towards women have no incentive to hire them as they would have to pay them the same as male counterparts which are preferred by them. This would result in sexist employers repeatedly hiring men over women, increasing unemployment within the discriminated group. However in a free market, women are able to offer their labour for any value they see fit, increasing their employability. In this scenario, the sexist employer must pay a price in order to exercise his prejudice. If a man and a woman have identical education and skills, yet the woman is willing to work for $10,000 less, the employer is now faced with a decision whether satisfying his prejudice is worth that amount to him. As illustrated by this example it is evident that an equal work-equal pay policy interferes with the free market and results in both employers and the discriminated groups being worse off, with employers having higher salary costs and unemployment within women increasing (Friedman,
Today in Ontario, employers who have a prejudice towards women have no incentive to hire them as they would have to pay them the same as male counterparts which are preferred by them. This would result in sexist employers repeatedly hiring men over women, increasing unemployment within the discriminated group. However in a free market, women are able to offer their labour for any value they see fit, increasing their employability. In this scenario, the sexist employer must pay a price in order to exercise his prejudice. If a man and a woman have identical education and skills, yet the woman is willing to work for $10,000 less, the employer is now faced with a decision whether satisfying his prejudice is worth that amount to him. As illustrated by this example it is evident that an equal work-equal pay policy interferes with the free market and results in both employers and the discriminated groups being worse off, with employers having higher salary costs and unemployment within women increasing (Friedman,