Assume that empirical evidence shows a difference in mean earnings between two groups, say, majority and minority workers. What conclusion may be drawn?

Question

Quizplus · Accepted Answer

The difference in mean earnings could be attributed to any of the given factors, including discrimination, differences in productivity and differences in human capital. Without further analysis and evidence, none of the statements can conclusively explain the observed difference in earnings.

Assume That Empirical Evidence Shows a Difference in Mean Earnings