Statistical discrimination

a. Is clearly illegal and almost never practiced.

b. Involves judging people on the basis of group rather than individual characteristics.

c. Increases the costs to the discriminator.

d. Benefits individuals from groups with low average values of characteristics that are valued by employers.

e. All of the above

Use the following information to answer Questions 7-10. Suppose that labor market experience is the only characteristic that influences wages. Suppose also that males and females have different levels of experience and have different "wage functions" (equations that show relationship between wages and experience). The male and female wage functions are given by the following:

For example, males with 5 years of experience have hourly wages of W = 10 +.5(5) = $12.50 per hour.

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Males Wage = 10 +.5 Experience Females Wage = 9+.25 Experience