Marcia is a white 23-year-old female, and Joan is a black 23-year-old female. Both Marcia and Joan were economics majors, and they graduated from the same college in the same year with the same GPA. Marcia and Joan both got identical jobs at a brokerage firm after graduating from college. They both work equally hard. Marcia earns $38,000 a year, and Joan earns $30,000 a year. Select the best explanation for this wage difference.

Question

Quizplus · Accepted Answer

There is no evidence that Marcia has less human capital than Joan, and there is no indication that Marcia receives a compensating wage differential that Joan does not. The most likely explanation for the wage difference is that Joan has been discriminated against because she is black.

Marcia Is a White 23-Year-Old Female, and Joan Is a Black