In the Nanaimo coalfields in British Columbia in the 1870s, miners of Chinese descent received lower wages than miners of British and Scottish descent. Although the wages of both groups tended to rise over time, the gap persisted until after WWI. Both groups of miners did the same work and were equally productive. What do economists call this pay differential?

Question

Quizplus · Accepted Answer

The pay differential described in the scenario is an example of wage discrimination, which occurs when workers are paid differently for the same work based on characteristics such as race or gender.

In the Nanaimo Coalfields in British Columbia in the 1870s