Which of the following statements is correct?
A)Differences in human capital may explain differences in wages between blacks and whites.
B)Racial discrimination is the strongest explanation for differences in wages between blacks and whites.
C)Gender discrimination is the strongest explanation for differences in wages between blacks and whites.
D)None of the above statements is correct.

Question

Quizplus · Accepted Answer

Studies have shown that differences in education and work experience, which are components of human capital, can explain some of the wage gap between blacks and whites. However, racial discrimination cannot be discounted as a factor as it has been found to play a significant role in wage disparities. Gender discrimination, while a separate issue, is not the strongest explanation for differences in wages between blacks and whites.

Which of the Following Statements Is Correct