Empirical studies of wage differentials between black men and white men estimate that
A) 3/4 of the differential cannot be explained by differences in observable variables (including human capital measures) .
B) 1/2 of the differential cannot be explained by differences in observable variables (including human capital measures) .
C) 1/3 of the differential cannot be explained by differences in observable variables (including human capital measures) .
D) 1/10 of the differential cannot be explained by differences in observable variables (including human capital measures) .
Correct Answer:
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