Question
Suppose that the median black man in the United States is paid 22% less than the median white man. Also suppose that white male workers
Suppose that the median black man in the United States is paid 22% less than the median white man. Also suppose that white male workers are about 75% more likely to have a college degree than black male workers. What can you conclude from this information?
A. These two facts alone suggest that human capital differences play a role in the wage disparity between black and white men, but they do not disprove the presence of racial discrimination.
B. These two facts alone suggest that the difference in earnings between white men and black men is due entirely to differences in human capital.
C. These two facts alone suggest that U.S. firms are racially discriminatory in their hiring practices.
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