Wage differences between men and women and among various ethnic groups are proof that the marginal productivity theory of income distribution is invalid.

Question

Quizplus · Accepted Answer

The marginal productivity theory of income distribution explains income based on the productivity of a factor of production, but wage differences can also result from discrimination, negotiation skills, education levels, and other factors not accounted for by this theory alone.

Wage Differences Between Men and Women and Among Various Ethnic