Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 19 - Part VI - Earnings and Discrimination - Questions for Review - Page 410: 6

Answer

Two difficulties that arise are those of education and compensating differentials.

Work Step by Step

A higher percentage of white men 25 and older have a college degree than black men of the same age group. A higher percentage of white women 25 and older have a college degree than black women of the same age group. Additionally, men and women choose different jobs, which can lead to a difference in wages paid.
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