Regarding the possibility of labour-market discrimination,which statement is a consensus view among economists

Question

Quizplus · Accepted Answer

Wage differences among groups can be caused by multiple factors, including discrimination, differences in human capital, and compensating differentials. Therefore, wage differences alone cannot determine how much discrimination there is. This is a consensus view among economists. Option A is incorrect because it assumes that all wage differences are solely due to human capital and compensating differentials, which is not true. Option B is incorrect because while discrimination can be a factor, it is not the main cause of wage differences. Option D is incorrect because discrimination can persist in the long run if it is not addressed.

Regarding the Possibility of Labour-Market Discrimination,which Statement Is a Consensus