White women earn an average of 25% less than white men. A labor economist who wants to investigate whether the differences in earnings indicate labor-market discrimination against women should consider whether white men and women have similar

Question

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The labor economist should consider all four options given in the question to determine whether the wage gap suggests labor discrimination against women. (i) and (ii) are essential to compare the gender composition of the workforce and their experience, education, and skills. (iii) helps to assess whether discrimination is present in hiring and promotion practices, and (iv) is necessary to determine the extent of segregation by gender in different occupations and industries. Only analyzing one or two of these factors would not be enough to draw any conclusions about discrimination.

White Women Earn an Average of 25% Less Than White