Empirical work that does not account for differences in the productivities of workers
A) is unlikely to find evidence of wage differentials.
B) can provide strong evidence of labor market discrimination.
C) is likely to misinterpret apparent evidence of labor market discrimination.
D) is accepted as superior to empirical work that does correct for differences in productivity of workers.

Question

Quizplus · Accepted Answer

Failing to account for differences in worker productivity can lead to incorrect interpretations of wage differentials as evidence of discrimination, when in fact they may reflect differences in productivity. Therefore, empirical work that does not account for productive differences is likely to misinterpret apparent evidence of labor market discrimination.

Empirical Work That Does Not Account for Differences in the Productivities