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VI. Discrimination in labor markets. Suppose you observe that in the manufacturing sector, there are differences in average wages between Black and White workers. Do

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VI. Discrimination in labor markets. Suppose you observe that in the manufacturing sector, there are differences in average wages between Black and White workers. Do you believe that there is racial wage discrimination in this sector? How would you like to test your hypothesis? Suppose you also see large wage differences in the IT industry between Blacks and Whites. How would you like to test the presence of racial wage discrimination in this case? Do you think that there are different mechanisms to drive wage difference between ethnicity groups in different sectors? (20 marks)

image text in transcribed
VI. Discrimination in labor markets. Suppose you observe that in the manufacturing sector, there are differences in average wages between Black and White workers. Do you believe that there is racial wage discrimination in this sector? How would you like to test your hypothesis? Suppose you also see large wage differences in the IT industry between Blacks and Whites. How would you like to test the presence of racial wage discrimination in this case? Do you think that there are different mechanisms to drive wage difference between ethnicity groups in different sectors? (20 marks)

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