Some economists argue that selective withdrawal has caused:
A) an increase in the observed average relative wages of those Black men who remain employed.
B) White men to leave the labor market if they cannot find a job that offers at least their reservation wage.
C) the labor force participation rate of men to be higher than the labor force participation rate of women.
D) the rate of unemployment to be higher for Black women than for Black men.
E) the wages of Black men to rise quickly relative to those of White men from 1963-1973.

Question

Quizplus · Accepted Answer

Selective withdrawal refers to the phenomenon where certain groups of individuals who are discouraged by low wages or poor job prospects, withdraw from the labor market. In the case of Black men during the 1960s and 1970s, many of them faced discrimination in the labor market and were unable to find good jobs. As a result, some of them may have chosen to withdraw from the labor market. This selective withdrawal caused an increase in the observed average relative wages of those Black men who remained employed, as the ones who stayed in the labor market were more likely to have better job prospects and higher wages. Therefore, choice A is the best answer.

Some Economists Argue That Selective Withdrawal Has Caused