Which of the following explanations of wage differentials is not likely to be true ?
Correct answer: B. Employers in competitive markets are bigots
- A. Men have more human capital than women
- B. Employers in competitive markets are bigots
- C. Men have more job experience than women
- D. None of the above
Explanation
In competitive markets, widespread employer prejudice would raise costs for bigoted firms and create an advantage for non-discriminating firms, so it is unlikely to persist as the explanation. Differences in human capital and experience can legitimately produce wage gaps.
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