Differences in human capital are likely to
A)be unrelated to wage rate differences across gender classifications, since both men and women are required to complete requirements for a high school diploma.
B)be most helpful in explaining age discrimination, but unhelpful in explaining race discrimination.
C)explain some of the differences in average wage rates across age classifications.
D)explain all of the differences in average wage rates across gender classifications.

Question

Quizplus · Accepted Answer

Differences in human capital can explain some of the differences in average wage rates across age classifications. However, it cannot explain all of the differences in average wage rates across gender classifications as gender discrimination and societal factors also play a role. Similarly, it may not be the most helpful in explaining race discrimination as systemic biases and prejudices also come into play. Finally, completion of high school diploma alone may not be sufficient to explain wage rate differences as higher levels of education and experience also contribute to differences in human capital.

Differences in Human Capital Are Likely to