Suppose that differences in skills explain part of the difference in wages by race. Wage differences arising from skill differences

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If there has been past discrimination in access to education, certain racial groups may have been disadvantaged in terms of developing their skills. As a result, differences in skill levels between different racial groups may exist, which could contribute to differences in wages. However, it is important to note that even if differences in skills explain some wage differences, this does not rule out the possibility of present or past discrimination playing a role in the overall wage gap between different racial groups.

Suppose That Differences in Skills Explain Part of the Difference