All differences in wages that are not accounted for by differences in human-capital investment are likely to be a result of discrimination.

Question

Quizplus · Accepted Answer

While discrimination can be a factor in wage differences, other factors such as labor market imperfections, job preferences, work experience, and geographic location also play significant roles in wage disparities that are not related to human-capital investment.

All Differences in Wages That Are Not Accounted for by Differences