Politicians often point to wage differentials as evidence of labor market discrimination against ethnic minorities and women. economists, however, argue against this approach because they don’t believ

Politicians often point to wage differentials as evidence of labor market discrimination against ethnic minorities and women. economists, however, argue against this approach because they don’t believe the wage differential really exists. they can’t agree on a definition of the term “discrimination.” they believe compensating differentials account for all wage differences. different people may have different wages for reasons unrelated to discrimination.