Consider the Following Data for Men and Women: If

question 18

Multiple Choice

Consider the following data for men and women: If a regression estimates the return to experience for men, β_M, to be 0.25, how much of the average difference in wages can be attributed to differences in work experience and how much can be attributed to discrimination and/or unobservable characteristics?

• A)$0.00 to differences in work experience; $2.50 to discrimination/unobservable characteristics.
• B)$1.20 to differences in work experience; $1.30 to discrimination/unobservable characteristics.
• C)$1.30 to differences in work experience; $1.20 to discrimination/unobservable characteristics.
• D)$1.50 to differences in work experience; $1.00 to discrimination/unobservable characteristics.
• E)$2.50 to differences in work experience; $0.00 to discrimination/unobservable characteristics.

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Definitions:

Behavioural Adaptation

Adjustments in behavior in response to environmental or situational changes, aiming at improving an individual’s ability to survive or succeed.

Functionalism

A theory in psychology that focuses on the purpose and functionality of consciousness and behavior in individuals.

Behaviourism

A school of psychology that focuses on observable behaviors and disregards mental activities.

Functionalism

A theory in psychology that considers mental life and behavior in terms of active adaptation to the person's environment.