Reference no: EM13732040

Question:

For each of the following scenarios, state whether the evidence described is consistent with preference-based discrimination or with statistical discrimination, or both. Explain briefly.

A. In most markets, majority group workers have higher average wages than minority group workers. However, in markets where the number of-minority workers is roughly equal to the number of jobs in minority-owned businesses, the wage differential between majority and minority group workers is close to zero.

B. Among workers of ages 45-55 (who are relatively unlikely to have small children) men and women with similar observed qualifications receive similar wage offers. But among workers between the ages of 25-35, men receive higher wage offers than women who have the same observed qualifications.

C. Male workers in a labor market earn more than female workers, even though all workers in the market have exactly the same material productivity, and hence both men and women have the same group average material productivity.

D. In the resume audit study conducted by Bertrand and Mullainathan (A ER 2004), resumes with "white-sounding" names received 50% more interview requests than resumes with "black-sounding" names even though the resumes listed identical qualifications and were sent to employers using a randomized assignment process.