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Politicians Often Point to Wage Differentials as Evidence of Labour

Question 173

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Politicians often point to wage differentials as evidence of labour market discrimination against ethnic minorities and women. Nonetheless, economists argue that this is not an appropriate way to identify discrimination because:


A) they don't believe the wage differential really exists
B) even in a labour market free of discrimination, different people will have different wages
C) they don't trust any of the statistics quoted by the politicians
D) all of the above

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