A friend writes in about the gender pay gap:
1. The studies that “hold all other factors equal” are pretty much worthless in determining the answer one way or another. . . . I think that not pushing on this and forcing the issue concedes underlying agreement that makes it very hard to argue that “market price is market price” because it grants that a couple of academics and a regression model can be used to set the “right” price for a market good, in this case labor.
2. I think that really forcing a clear, unambiguous definition of “discrimination” is crucial. Is deviation from some inherent fair, true or just compensation level for a given person (see #1 above), or is it a price that is different than the price that would be established by each firm and individual acting in self-interest as they understand it (or is it some other definition).