4. More sources of wage disparities Two economists agree that labor market discrimination against certain workers unfairly leads to lower wages for the disfavored group. Economist X argues that government intervention is most likely necessary to eliminate this unfair treatment, while Economist Y argues that the best solution to the unfair treatment is to let the market work to eliminate it on its own. Economist Y is most likely to be correct when labor and product markets are highly competitive and the lower wages of the disfavored group result from: Differences in human capital Discrimination by employers Discrimination by fellow workers