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"Male-female wage differentials reflect human capital differences" Discuss Introduction The gender wage differential has been attributed to differences in productivity as a result of human capital differences, discrimination and choice of occupations. The differential exists as a result of differences in productivity, termed 'explained' and termed 'unexplained' as a result of discrimination. Wage differentials caused by human capital differentials are justifiable as long as they represent the value of their marginal product. In the case of gender discrimination, females may receive lower monetary rewards than their marginal product would otherwise suggest and consequently receive less than their comparable male competitors. Explained Wage Differentials: Productivity Some economists believe that part of the wage differential is caused by rational choices made by women. Females tend to have interrupted work as a result of childbearing and family upbringing and consequently are likely to have a shorter working career and invest less in education and training. Additionally, women...

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