Complete Question;
Which is not an example of labor market discrimination?
A. paying two workers with identical skills differently because one belongs to a demographic group reputed to have poor work habits
B. paying a white male more than an Hispanic female because his marginal revenue product of labor is three times higher than hers
C. shunting female workers into lower paying jobs to reserve the high-paying ones for men
D. denying a job to the best candidate because you would rather hire someone of your own race who can relate to the way you do things
Answer:
B. paying a white male more than an Hispanic female because his marginal revenue product of labor is three times higher than hers.
Explanation:
An employee can be defined as an individual who is employed by an employer of labor to perform specific tasks, duties or functions in an organization.
Basically, an employee is saddled with the responsibility of providing specific services to the organization or company where he is currently employed while being paid a certain amount of money hourly, daily, weekly, or monthly depending on the contractual agreement between the two parties (employer and employee).
Hence, while an employer may be the owner of a business firm or company, an employee is a subordinate employed to provide unwavering services to the employer while also, being professional and diligent at all times.
Simply stated, employees working in an economy make up the workforce and labor market of that economy.
Labor market discrimination can be defined as a situation in which employers of labor engage in the act of treating their employees differently with respect to wages, recruitment, promotion and other work-related benefits, based on non-economic prejudices such as age, gender, marital status, race, sex, religion, etc.
In this scenario, paying a white male more than an Hispanic female isn't considered as a discrimination because his marginal revenue product of labor, which is an economic factor is triple of hers.
