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Business, 25.04.2020 01:06 diflakf

Suppose that the labor market for medical researchers is perfectly competitive, but employers of researchers have only imperfect information about the productivity of any researcher. Researchers come from one of two groups: A and B. The following statements describe the information that employers have about researchers: (i) they know that, on average, researchers from group A are more productive than researchers from group B; and (ii) they know that the worker-specific information that they observe is equally informative for researchers from group A and researchers from group B. According to the statistical discrimination model, which of the following statements about equilibrium wages of researchers is correct?
Group of answer choices

A. A researcher from group A will receive a higher wage than a researcher from group B with identical individual credentials only if the individual credentials are "above average"

B. A researcher from group A will receive a higher wage than a researcher from group B with identical individual credentials only if the individual credentials are "below average"

C. A researcher from group A always will receive a higher wage than a researcher from group B with identical individual credentials

D. Wages will vary less among researchers from group A than among researchers from group B

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Answers: 2

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