Question: 2&3 please 2. Assume there are two demographic groups in the population. In year 1950, black workers have low average education levels and low average

2&3 please

2&3 please 2. Assume there are two demographic groups in the population.

2. Assume there are two demographic groups in the population. In year 1950, black workers have low average education levels and low average wage levels. In year 1950, white workers have high average education levels and high average wage levels. Using the concept of statistical discrimination, explain why both (i) the wage gap and (ii) the education gap can persist into the future. 3. Fryer, Pager, and Spenkuch (2011) estimate that at least one-third of the black-white wage gap is explained by labor market discrimination. Paraphrasing, they find that black workers receive low initial wage offers, but see their wages grow quickly as they spend time at firms, possibly indicating that firms are learning about their productivity. Explain why this pattern is consistent with statistical discrimination

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