Suppose that differences in skills explain part of the difference in wages by race. Wage differences arising from skill differences __________.


may result from past discrimination in access to education

are not attributable to present or past discrimination

will disappear when labor markets are in equilibrium

are always classified as racial discrimination

Answer D

No.

Beware of any answer that says "always" or "never."

Yes, A.

To determine the correct answer, we should break down the options and evaluate them based on their relevance to the given situation.

A. may result from past discrimination in access to education:
This option suggests that wage differences attributed to skill differences could be the result of past discrimination in accessing quality education. While this option acknowledges the possibility of discrimination playing a role in skill differences, it does not explain all cases of wage differences.

B. are not attributable to present or past discrimination:
This option suggests that wage differences arising from skill differences are not related to any form of discrimination, whether present or past. This is an extreme claim, as discrimination can play a part in creating wage disparities, depending on the context. Therefore, this option may not be the most accurate.

C. will disappear when labor markets are in equilibrium:
This option proposes that when labor markets reach a state of equilibrium, any wage differences resulting from skill differences will disappear. While this may be true to some extent, it assumes that skill differences are the only factor influencing wage disparities. Other factors, such as discrimination or structural barriers, can still contribute to wage differences, even in equilibrium.

D. are always classified as racial discrimination:
This option states that wage differences attributed to skill differences are always classified as racial discrimination. However, this is an oversimplification. While racial discrimination can be a factor in wage differences, not all wage disparities based on skill differences can be considered racial discrimination.

Based on the evaluation, option C seems to be the best choice. Wage differences resulting from skill differences can potentially decrease or disappear in an equilibrium labor market. However, it's important to note that other factors, including discrimination, can still contribute to wage disparities.