Multiple Choice: prejudice by customers will likely result in firm hiring qualif

Question

Multiple Choice: prejudice by customers will likely result in firm hiring qualified members of ‘undesired’ group, and wage discrimination unlikely due to internal segregation.

A) increases in women’s qualifications, increases in the unexplained portion of the gender differential and changes in the wage structure that favored men

B) increases in women’s qualifications, decreases in the unexplained portion of the gender differential and changes in the wage structure that favored men

C) decreases in women’s qualifications, decreases in the unexplained portion of the gender differential and changes in the wage structure that favored men

D) increases in women’s qualifications, decreases in the unexplained portion of the gender differential and changes in the wage structure that favored women

E) increases in women’s qualifications, increases in the unexplained portion of the gender differential and changes in the wage structure that favored women

Explanation / Answer

Option E

Prejudiced customers would be willing to pay more for favored workers, hence firms too would have to pay more in order to attract favored workers which results in attracting favored women workers with higher qualification, thereby increasing the unexplained factor.

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