Which statement best explains the cause of wage differential
A)Additional education that increases a worker's wage necessarily increases the worker's productivity, and firms pay their workers based on their productivity.
B)If discriminating wage differentials persist in competitive markets, it is primarily because either consumers are willing to pay to maintain the discrimination or because government mandates it.
C)Efficiency wage theory explains that non-discriminatory employers pay lower wages to workers whom discriminatory employers refuse to hire.
D)Workers from the perfectly competitive market are paid a higher wage than those from other market structures.

Question

Quizplus · Accepted Answer

Wage differentials can persist due to discrimination if consumers support it or if government policies enforce it, despite competitive market pressures.

Which Statement Best Explains the Cause of Wage Differential